Loading...
HomeMy WebLinkAbout2015 01.20 City Council Regular Agenda Meeting location City of Apache Junction, Arizona City Council Chambers at City Hall A ends 300 E Superstition Blvd g Apache Junction,AZ 85119 City Council Meeting www ajcity net Ph (480)982-8002 Tuesday,January 20,2015 7 00 PM City Council Chambers A. CALL TO ORDER B. INVOCATION AND PLEDGE OF ALLEGIANCE C. ROLL CALL D. CONSENT AGENDA The council may, at this time, take single action on any or all items listed as consent agenda items These may include, but are not limited to, acceptance of agenda, acceptance of minutes, appointments, acceptance of resignations and adoption of certain resolutions and other items which do not require a public hearing The consent agenda is a timesaving device of which the mayor and city council is to receive documentation on these items from the city manager for their review prior to the meeting Any member of the council may remove any item from the consent agenda for discussion and cause a separate vote on the matter later in the agenda 1 Acceptance of agenda. 2. Approval of minutes of regular meeting of January 6, 2015 3. Consideration of approval of Resolution No 15-06, recommending the city's Fiscal Year 2015 Local Transportation Assistance Fund II allocation be directed to the Apache Junction Active Adult Center(dba East Valley Adult Resources) for support of transportation services and authorizing the Mayor to sign a pass-through agreement 4. Consideration of approval of Resolution No 15-02, committing local funds as leverage for a Fiscal Year 2014 State Special Project application. 5. Consideration of approval of Resolution Nos 15-03 (Authority to submit), 15-04 (Commitment of local funds), and 15-05 (Adoption of Housing Rehabilitation Guidelines) regarding the submission of a Fiscal Year 2014-15 State Housing Fund grant application E. AWARDS, PRESENTATIONS AND PROCLAMATIONS Awards,presentations from other organizations,proclamations issued by the mayor, and acknowledgement of distinguished guests and visitors, and staff presentation of receipt of grant or donated funds are permitted at this time City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 City Council Meeting Agenda January 20,2015 F. ANNOUNCEMENT OF CURRENT EVENTS The mayor or any member of council may at this time present a brief summary of current events However, no discussion shall take place on such items except for clarifying comments related to substance, time and location G. CITY MANAGER'S REPORT The city manager, members of city staff or those individuals designated by the manager may present information pertinent to items under consideration or information related to the operation of the city There shall however be no discussion at this time except for clarification inquiries 6. City manager's report 7. Update and discussion on the Arizona Office of Tourism Marketing Cooperative H. PUBLIC HEARINGS Public hearings required by applicable law shall be conducted by the council and any person shall be given the opportunity to speak All remarks shall be addressed to the council as a whole and not to any member thereof Such remarks shall be limited to five(5)minutes unless additional time is granted by the mayor This time limitation shall not apply to applicants and their agents appearing before the council 8. Consideration of and action on the application for a special event liquor license for Cactus Canyon Junior High PTO for February 28, 2015, at 3301 S Goldfield Road. The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control 9 Consideration of and action on the application for a special event liquor license for Superstition Mountain Rotary Club for Lost /ob. Dutchman Days on February 27 - March 1, 2015, at 1590 E. Lost Dutchman Boulevard. The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control. 10. Discussion on Apache Junction City Code, Vol I, Chapter 14 Cable Systems Modifications. No action required at this time 11. Consideration of acceptance of the December 16, 2014 CenturyLink Cable TV License applicaiton OLD BUSINESS The council shall consider any business that has been previously considered and which is still unfinished to include those items previously postponed or tabled No member of the public shall be permitted to speak on these items unless invited to do so by the mayor after first submitting a written request-to-speak form with the city clerk City of Apache Junction,Arizona Page 2 Printed on 1/13/2015 City Council Meeting Agenda January 20,2015 J. NEW BUSINESS The council shall consider any business not yet considered No member of the public shall be permitted to speak on these items unless invited to do so by the mayor after first submitting a written request-to-speak form with the city clerk 12 Presentation and discussion on city building code and related city code updates Staff will discuss updating the city's building codes to the 2015 edition of the International Code Council Series of Codes The city's current code is based on the 2006 edition. K. COUNCIL DIRECTION TO STAFF This item allows the mayor and city council to direct staff on specifically listed matters 13. Direction to staff on recruitment for city manager position In conjunction with City Manager George Hoffman's plans to retire in 2015, the mayor and council wish to proceed with a recruitment process to fill the position L. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES 14. Executive Session at 5 45 P M and Work Session at 7.00 P M for Monday, February 2, 2015 15. Executive Session at 5 45 P M for Tuesday, February 3, 2015 Other meetings if necessary M. CALL TO PUBLIC At this time the public has the privilege to address the council with requests, communications, comments or suggestions relating to city business that are not listed on the agenda All speakers must have already submitted a written"Request to Speak"form to the city clerk no later than the conclusion of the city manager's report portion of the agenda If there is a group speaking on the same item, they should select a spokesperson All such remarks shall be addressed to the council as a whole and not to any member thereof The mayor is authorized to ask a speaker to stop speaking and leave the podium or to adjourn the meeting if anyone becomes disorderly, uncivil, makes personal attacks or continues to speak about items that are not within the junsdiction of the city after being warned such issues are beyond the jurisdiction of the city to act The council may not answer questions of the speaker, discuss the matter with one another, but may, at the conclusion 1)respond to criticism by a speaker;2)ask the city manager to review a matter, 3)ask the city manager to place the matter on a future agenda Each speaker must approach the podium, speak into the microphone,provide their name and address There is a three(3)minute time limit per speaker N. ADJOURNMENT Copies of this agenda and additional information on any of the items listed above may be obtained from the City Clerk's office located at 300 E Superstition Blvd,Apache Junction, AZ 85119, Monday through Thursday from 7 00a-6 00p, excluding holidays The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and facilities Specific requests may be made by contacting the Human Resources Office at(480)474-2617 or TDD(480)983-0095 City of Apache Junction,Arizona Page 3 Printed on 1/12/2015 CITY COUNCIL REGULAR MEETING JANUARY 6, 2015 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on January 6, 2015, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Insalaco called the meeting to order at 7 . 05 p m. INVOCATION Councilmember Waldron gave the Invocation. PLEDGE OF ALLEGIANCE Councilmember Wilson led the Pledge of Allegiance. ROLL CALL Councilmembers Present: Mayor Insalaco Vice Mayor Barker Councilmember Evans Councilmember Rizzi Councilmember Waldron Councilmember Wilson oink (Councilmember Serdy was absent. ) Staff Present: City Manager George Hoffman Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Public Safety Director Tom Kelly Development Services Director Larry Kirch Assistant to the City Manager Matt Busby REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 1 OF 21 Others Present: Senior Planner Rudy Esquivias ACCEPTANCE OF CONSENT AGENDA ) ) Vice Mayor Barker MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED. Councilmember Evans SECONDED THE MOTION. VOTE: Unanimous. The motion carried. AWARDS, PRESENTATIONS AND PROCLAMATIONS Mayor Insalaco read a proclamation designating January 20, 2015 as Arizona Winter Visitors Day and presented the proclamation to Judy Lutes of the Arizona Winter Visitors Association ANNOUNCEMENT OF CURRENT EVENTS None. CITY MANAGER' S REPORT Assistant City Manager Bryant Powell read two letters of appreciation sent to the police department and code compliance. PUBLIC HEARINGS APPLICATION FOR A TEMPORARY EXTENSION OF PREMISES FOR ELKS LODGE #2349 FOR A CAR SHOW ON JANUARY 17, 2015 ) ) City Clerk Kathleen Connelly briefed the council on the item. Mayor Insalaco requested the applicant address the council . Ms . Cindy Pierson of the Elks Lodge addressed the council It is the fourth year helping the REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 2 OF 21 Paws 4 Life Car Show. Hopefully it is another good turnout like last year when they had about 70 cars. Mayor Insalaco commented that is a good showing. Ms . Cindy Pierson stated it was really good. Mayor Insalaco opened the public hearing on the item. There being no one wishing to speak, he closed the public hearing and reopened the item to council discussion. There being no further discussion, he called for a motion. Councilmember Waldron MOVED THAT THE APPLICATION FOR A TEMPORARY EXTENSION OF PREMISES FOR ELKS LODGE #2349 FOR JANUARY 17, 2015, SUBMITTED BY RALPH HENDERSON, BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. Vice Mayor Barker SECONDED THE MOTION. VOTE . Unanimous. The motion carried. APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR ELKS LODGE #2349 FOR LOST DUTCHMAN DAYS ON FEBRUARY 26, 2015 City Clerk Kathleen Connelly briefed the council on the item. Ms. Cindy Pierson from the Elks Lodge addressed the council for any questions . Mayor Insalaco commented they have none as they have been through this one before unless someone else has any questions for her. This has always been a success with no problems. He opened the public hearing on the item. There being no one wishing to speak, he closed the public REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 3 OF 21 hearing and called for council discussion There being no further discussion, he called for a motion. Vice Mayor Barker MOVED THAT THE APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR ELKS LODGE #2349 FOR FEBRUARY 26, 2015, SUBMITTED BY RALPH HENDERSON, BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. Councilmember Wilson SECONDED THE MOTION. VOTE: Unanimous. The motion carried. PROPOSED ORDINANCE NO. 1411, CASE PZ-7-14, A CITY-INITIATED REQUEST FOR A PROPOSED REZONING OF A ±2 ACRE PROPERTY LOCATED AT 1560 W. SUPERSTITION BOULEVARD FROM RECREATIONAL VEHICLE PARK TO GENERAL COMMERCIAL DISTRICT BY PLANNED DEVELOPMENT Senior Planner Rudy Esquivias briefed the council on the item. Mayor Insalaco opened the public hearing on the item. There being no one wishing to speak, he closed the public hearing and reopened the item to council discussion. There being no further discussion, he called for a motion Councilmember Waldron MOVED THAT ORDINANCE NO. 1411 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED Vice Mayor Barker SECONDED THE MOTION. VOTE: Unanimous . The motion carried. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 4 OF 21 OIN City Clerk Kathleen Connelly read the ordinance by title only Councilmember Waldron MOVED THAT ORDINANCE NO. 1411, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED Vice Mayor Barker SECONDED /IN THE MOTION. VOTE: Unanimous. The motion carried. PROPOSED ORDINANCE NO. 1412, PZ- 6-14, FOR APPROVAL OF A PLANNED DEVELOPMENT MAJOR AMENDMENT, PROPOSING TO CHANGE THE PLAN OF DEVELOPMENT FOR A GENERAL COMMERCIAL DISTRICT BY PLANNED DEVELOPMENT AT THE NORTHWEST CORNER OF IRONWOOD AND BASELINE Senior Planner Rudy Esquivias briefed the council on the item. Councilmember Rizzi commented the trees in back on the west side of the property are a buffer zone. When this was first brought to them they were told there would not be any loading or unloading of goods in the back of the stores. Senior Planner Rudy Esquivias stated that is correct. Councilmember Rizzi commented there will not be any trucks back there. It will be peaceful back there. Senior Planner Rudy Esquivias stated there is no alleyway. The only thing that comes close to an alleyway is a little loop which may be a drive thru or access for one of the buildings They do not know what the use is REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 5 OF 21 going to be yet It is the only vehicle access point near the manufactured homes. Councilmember Rizzi commented there is quite a bit of buffer zone Councilmember Wilson asked what the little square things are at the front of the buildings . He asked if it is covered or has supports. emN Senior Planner Rudy Esquivias stated they are pillars. Councilmember Wilson asked if it is covered as it does not quite look like it Senior Planner Rudy Esquivias stated the pictures show it is a covered pedestrian walkway. The roof lines extend over the sidewalk. Councilmember Waldron commented it would be interesting to see the traffic study with the eastbound off ramp at Meridian It will redirect a lot of traffic over to Baseline and off of Ironwood Senior Planner Rudy Esquivias stated that is what the city engineer believes. Vice Mayor Barker asked if there are turn lanes to the east of this property. Senior Planner Rudy Esquivias 0.141 stated it will be a southbound deceleration lane. Vice Mayor Barker commented it is the northern driving traffic that will be of concern in the morning. Senior Planner Rudy Esquivias stated that is correct. Mayor Insalaco requested the applicant address the council. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 6 OF 21 /1 Mr. Grant Therion with A.T. Meridian, the developer and applicant, addressed the council Vice Mayor Barker asked if they have any possible tenants at this point. Mr Grant Therion stated they do not right now They did not want to go out to the market unless they had something approved They will go out to the market if this plan is approved. Mayor Insalaco commented a lot of times they get developments, they pass them, and then they sit on the shelf for two or three years. They already have a couple of them in town He asked if he has any idea, knowing he has to get the tenants, how long before this might even get started once it is approved. Mr Grant Therion stated obviously as the developer the sooner the better They would love it to happen sooner They used to be able to build it and they will come, but in today' s economy they have to have some presales and preleasing. He used to be a developer that did some brokerage. Now he is a broker that does some development because he needs to go find tenants He cannot promise them something. Mayor Insalaco commented he is just asking if he has any idea on when he would like to get it started Mr. Grant Therion stated he is going to get it started. He has cost estimates and he will go to a lender and see. He is all cued up ready to go as soon as he gets some interest from tenants, either in the building in the back or in the drive thrus Obviously, east on Baseline east of Ironwood there is one thousand acres the State Land Department has that they sold at one time and then took back. They would love that to happen. It would make this a lot more feasible. It is those kinds of things . The timing of when they happen may affect them. It will be positive things for them. A lot of it will be dictated by the economy. Right now things are not going great but they seem to be plugging along. They will REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 7 OF 21 go find certain uses they think would fit well there based on the traffic that is there. He lives in Queen Creek and that is what has interested him there. There is a lot of traffic on Ironwood. He has talked to some economic development people with Apache Junction to figure out what kind of uses are needed out here. Those are what he is going to pursue. Mayor Insalaco commented that is what he wanted to know. He is not going to get this approved eN and then just let it sit. Councilmember Waldron commented they are hoping State Land moves, too. Assistant City Manager Bryant Powell stated this is another opportunity where the Buxton Study that they encouraged staff and budgeted in the prior year will be data the economic development staff will present to the private sector. They will be able to utilize that. This is another one of those chances to watch and see how that investment unfolds. Mayor Insalaco opened the public hearing on the item. Mr Ken Camp, Desert Harbor, the development behind this, addressed the council. He stated they have some concerns in the park. At the planning meeting they were told they would build an 8 foot wall on the west and north. He presumes the walls will butt up against each other so they do not have any weeds growing up between them. They are concerned about the height of the lighting in the back of the building. If it is very high over the 8 foot wall it will light up the whole row of people along the back wall. If the lighting is down lower it should not affect them. He asked if there are any back doors . Mayor Insalaco commented there are not. Mr Ken Camp stated they only have one door in and out. He asked if that is against the fire laws. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 8 OF 21 Mayor Insalaco commented not anymore. City Attorney Joel Stern stated this is not question and answer. Mr. Ken Camp stated he is just concerned. City Attorney Joel Stern stated he can make his points and then the council can direct staff to get those answers. Mr. Ken Camp stated they are also concerned about the lighting in the parking lot They are very concerned about the access out of this going onto Ironwood. He asked if it is going north or south. They cannot get out of their parking lot now in the morning and in the afternoon. They are also concerned about what time of day the trash would be picked up. Mayor Insalaco closed the public hearing with no one else wishing to speak. He reopened the item to council discussion. Vice Mayor Barker requested they get some of those questions answered. Councilmember Waldron asked Rudy or the architect to address the concerns . Mr Rob Burkheimer, the architect, addressed the council. There was a question about the height of the wall. They mentioned in the planning and zoning meeting that it would be 8 feet There are some details that need to be worked out later on as there is a wall there now. Where the wall hits exactly on the property line and where they are trying to put a new wall he cannot be sure if there is a space between or not. It is a detail thing that will have to be worked out later Obviously, nobody wants to have a dead zone there. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 9 OF 21 OsS Vice Mayor Barker commented they do not want a space in there. Mr Rob Burkheimer agreed. He acknowledged that. They have to work with the night sky ordinance and they are not allowed to shed any light beyond their property line. Except for maybe some ambient light factor there is no reason to light that up other than to make sure it is not a pitch black area over there He does not see that as an issue or concern. Things like that are normally reviewed in plan review. There are no back doors. He is not sure about the lighting in the parking lot except they have the same issue of the night sky ordinance applying. They have to provide photometric studies showing they are not producing any stray light going off the property. It is another standard in plan review. It is too early to mention trash pick up or how it would be done. A retail center is normally done once a week on demand. This is a small center and should not be high demand. There is always an issue of people dumping their trash in the center more than the center producing its own trash. It is a detail that is not germane at this time. Vice Mayor Barker commented he had another question in regards to access. He asked how the traffic would be directed going out of there. Mr. Rob Burkheimer stated they have done a traffic study and have a deceleration lane. Vice Mayor Barker commented she believes his concern is they would be turning north and would try to butt up against all that traffic going north. emS Mr. Rob Burkheimer stated he did not know how to respond to that except that everywhere they can do that. He does not think this is the kind of center that is going to generate a lot of cars at one time. It is not a large commercial center where they would have hundreds of cars trying to get out. One or two cars. If they cannot get out on their thing, they can pull through to the site on the corner and do their turn from there. The two properties are congruent with each other. The deceleration lane will help with the cars coming from the north. They will pull out of the traffic flow REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 10 OF 21 eN and not cause people to want to come to the center to stop traffic in the northbound direction Again, it is a very small center, very modest in size, and they are not looking at a lot of cars. Mayor Insalaco closed the discussion with no further comments and called for a motion Vice Mayor Baker MOVED THAT ORDINANCE NO. 1412 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Evans SECONDED THE MOTION VOTE • Unanimous. The motion carried. City Clerk Kathleen Connelly read the ordinance by title only. Vice Mayor Barker MOVED THAT ORDINANCE NO 1412, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED. Councilmember Wilson SECONDED THE MOTION. VOTE: Unanimous. The motion carried. PROPOSED ORDINANCE NO. 1408, ANNEXATION CASE AN-2-14, REQUEST BY MESA DEVELOPMENT CORPORATION AND JBW INVESTMENTS LLC FOR ANNEXATION OF AND ASSIGNMENT OF CITY ZONING DISTRICTS TO PROPERTIES LOCATED AT THE SOUTHEAST CORNER OF TOMAHAWK AND US 60/PROPOSED ORDINANCE NO. 1409, CASE PZ-4-14, REQUEST BY MESA REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 11 OF 21 DEVELOPMENT CORPORATION AND JBW INVESTMENTS LLC FOR REZONING SEVERAL PROPERTIES LOCATED AT THE SOUTHEAST CORNER OF TOMAHAWK AND US 60 FROM RESIDENTIAL ZONINGS TO GENERAL COMMERCIAL DISTRICT BY PLANNED DEVELOPMENT Senior Planner Rudy Esquivias briefed the council on the items. PIN Mayor Insalaco requested the applicant address the council Mr. John Wharton, 1540 E San Remo, Gilbert, addressed the council. He stated he appreciated being able to meet with Rudy a couple of weeks ago and work out some details. He told him he would do everything he could to bring the hotel to the property as soon as possible He had hoped to get a four-story, 84-room hotel there They said go get the zoning so here we are. He was hoping to get a sign the same as Carl' s Jr but the ordinance has been changed and he thinks they can live with that He thinks they can live with removing a lot of things the city did not want. He would like a little bit of flexibility with the balance of parcel, other than the hotel part, so their hands are not so tied He is not sure what is going to go in there. They would like to have a little more elbow room. Councilmember Waldron commented he does not understand that if he is looking for a hotel or motel on that property why he would want to have a mini-storage warehouse or a used car sales lot Mr. John Wharton stated those are located next to hotels all the time. It is not their intent. Councilmember Waldron commented he has stayed at motels and has not seen a used car lot next door Mr. John Wharton stated he thinks the motel at Idaho and US 60 has a mini-storage right REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 12 OF 21 next door. These things happen. The property that surrounds them is an old mobile home park It is not that upscale. They do not expect some upscale user is going to want to necessarily want to be there unless they get a really nice hotel there. Then their options will increase. That is their first priority They are not looking specifically for anything else. They want to have some flexibility because they feel like they are doing their best to get a hotel for the city. They are okay with the sign and eliminating the vast majority of the uses the city does not want. Mayor Insalaco commented he has a problem with RV, boat and vehicle storage They turn out to be, excuse his expression, junkyards. Councilmember Rizzi agreed. Vice Mayor Barker commented anywhere things are up against the freeway Mayor Insalaco commented right up against the freeway with boat trailers and a lot of people just store them there and they forget about them. They turn out to be junk. And the used auto sales and stuff. As far as the multi-use and single family, he would not have a problem with that, but he sure has a problem with the RV, boat and vehicle storage and the used auto sales. Vice Mayor Barker asked if the idea here is to make this better. He alluded to the fact the area around it was not as upscale, which was his term. She asked if the idea is to create situations in which we become eIN more upscale She asked why the council would want to put itself in a position where nothing particularly upscale would want to be there, such as having warehouses backed up against the freeway and cars parked all over the place. She does not know why he would want to do that to himself. Mr. John Wharton stated he is not necessarily in disagreement with her. The property is a half mile north of Baseline Road. There is nothing for seven miles on the other side of Baseline Road except the landfill. They can go three miles east and west on Tomahawk and there is REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 13 OF 21 eN nothing. There is up to fifty square miles of nothing. The other property on Ironwood has all the traffic. This property does not have traffic. This is not a great commercial location because of its access and there are no homes out there. It is state-owned land so it will probably not happen any time soon. He thinks, at least in the interim, be a little bit flexible to some of the things that go out there. Maybe with a window of for so many years they can do this but not that as there are not enough homes out there to support a business and there will not e) be for years in that particular area to support a lot of commercial uses. Particularly with the fact it is virtually a dead end road. It goes to the landfill. There is not a lot of traffic going up and down the street. And there is the access issue discussed the last time. He has been in commercial real estate for a long time and he has all the credentials. He has the three top in the world. He knows a little bit about what he is talking about. This site is not a great site Councilmember Wilson asked if the area to the north is the non-hotel portion. Senior Planner Rudy Esquivias stated they do not know yet. They have a very, very conceptual drawing which shows a possible hotel site along Tomahawk The rest of it was set aside for RV storage This is not a real plan. The hotel does not necessarily have to go here. One example is on 29th Avenue and Idaho there is the 4 Sons and the hotel is a few hundred feet to the east of the 4 Sons. It does not necessarily have to be on the main road frontage. They do not have a development plan, only an idea. Councilmember Wilson asked if leaving the property as GR would open up the opportunities for him to market it any different. He knows the portion down where the apartment buildings are would be locked in. Senior Planner Rudy Esquivias stated all this is theoretically going to go away. If this is rezoned, then over time all these uses would go away The commercial development opportunity would come along. Councilmember Wilson commented if they left the portion to the north GR he would have REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 14 OF 21 to come in later on for a rezoning and it would be addressed in the future Senior Planner Rudy Esquivias stated the portion down below right now is zoned for apartments. The north pieces are basically zoned for 1.25 acre manufactured homes horse property. Councilmember Wilson asked if he would have to come in for a rezoning if he decides to put a hotel in the lower area. Senior Planner Rudy Esquivias stated he would . Mayor Insalaco commented he has a problem with him putting in a used car lot. They are going to be fenced in so here they go with a chain link fence. If he puts in a boat storage it is a chain link fence. They have so many of them now and they are trying to clean up the city. To him, it is not them being good stewards of the city if they do this that way. He has a terrible time with that. Councilmember Rizzi agreed She commented she believes this is one of those times when they need to stick to their guns Planning and zoning had gone through and carefully taken a look at some of the other businesses we have and some of the potential we have in this area. It is one of those times when they need to stick to their guns and back up our planning and zoning commission They have worked hard on this. She agrees they are uses they just do not want in that area. OIN Mr. John Wharton asked if the application would be acceptable if the outside storage was deleted. He asked if he stipulates to no outside storage would the rest of the application would be acceptable. Mayor Insalaco asked what he plans to do with the used cars. He asked if they would be put inside a building REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 15 OF 21 Mr. John Wharton stated they can nix the used cars, too. He is just trying to get this done tonight. Vice Mayor Barker commented in reality they could just take it as it came through planning and zoning and, if they wish, they could add the number ten signage per the staff memo. eN Councilmember Evans commented she has absolutely no problem with the annexation and the rezoning allowing him to pursue a hotel or a number of hotels. As far as any of those other uses, other than multi-family, she still does not want them on the freeway access. It does not even really fit. She liked what planning and zoning came up with, she still thinks number ten needs to be added in, but they are just not what they want by the freeway. The city has limited freeway visibility and he has limited access in there, which is one of the things he said originally that he had a problem with. She is confused why he would not sell off the back part to a hotel and keep the front for retail . Mr John Wharton stated that is the second site plan. It is to put the hotel on the east side with a plan for a restaurant, maybe a Denny' s or something, which is what they would really like to do. He asked to have the site plan put on the overhead. It shows the hotel on the eastern side along the freeway with some restaurant pads. What is crossed out on the uses is boat storage, where he had wanted to delete that from planning and zoning' s recommendations. He will take that off Now he will take off the mini-storage. He will take off the auto sales. When he takes all that out he is ems basically going with what planning and zoning suggested Vice Mayor Barker stated he is. Mr John Wharton stated he is okay with that . If they are okay with that, he is okay with that. Councilmember Waldron commented he had mentioned at the work session that under item REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 16 OF 21 eight, he still has the option of going to development services for a conditional use permit for another use That option still exists for him to do Mr John Wharton stated that is helpful . Mayor Insalaco commented plus /mN to change an ordinance for one person, then they have someone else coming up. They would want to know if they did it for one party why they would not do it for them This is our ordinance and they should stick by it. Councilmember Rizzi agreed. Mayor Insalaco opened the public hearing on the items. There being no one wishing to speak, he closed the public hearing and reopened the items to council discussion. There being no further discussion, he called for a motion. Vice Mayor Barker MOVED THAT ORDINANCE NO. 1408 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Waldron SECONDED THE MOTION. VOTE: Unanimous. The motion carried. OmN City Clerk Kathleen Connelly read the ordinance by title only. Vice Mayor Barker MOVED THAT ORDINANCE NO. 1408, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED. Councilmember Wilson SECONDED THE MOTION. VOTE . Unanimous REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 17 OF 21 eN The motion carried. Mayor Insalaco called for the second motion. Vice Mayor Barker MOVED THAT ORDINANCE NO. 1409 BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. Councilmember Wilson SECONDED THE MOTION. VOTE• Unanimous. The motion carried. City Clerk Kathleen Connelly read the ordinance by title only. Vice Mayor Barker MOVED THAT ORDINANCE NO 1409, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED ADDING THE CONDITION NUMBER TEN, SIGNAGE, CONTAINED IN THE DECEMBER 22ND STAFF REPORT. Councilmember Waldron SECONDED THE MOTION VOTE: Unanimous. The motion carried. OLD BUSINESS None. NEW BUSINESS None DIRECTION TO STAFF ACCEPTANCE OF CENTURYLINK CABLE TV LICENSE APPLICATION REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 18 OF 21 City Attorney Joel Stern briefed the council on the item. Mayor Insalaco called for any discussion. There being no discussion, he called for a motion. Councilmember Waldron MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING /, ACCEPTANCE OF THE CENTURYLINK CABLE TV LICENSE APPLICATION• 1) FILE CENTURYLINK APPLICATION AND PROPOSED CABLE TV LICENSE AGREEMENT (DECEMBER 16TH VERSION) IN A PUBLIC FILE AT THE CITY CLERK' S OFFICE PURSUANT TO APACHE JUNCTION CITY CODE, VOLUME I, SECTION 14-1-16 (A) AND MAKE IT AVAILABLE FOR PUBLIC INSPECTION. 2) SCHEDULE ON THE JANUARY 20TH COUNCIL AGENDA CONSIDERATION FOR APPROVAL OF THE CENTURYLINK APPLICATION UNDER NEW BUSINESS. 3) SCHEDULE A PUBLIC HEARING ON THE PROPOSED CENTURYLINK CABLE TV LICENSE AGREEMENT UNDER PUBLIC HEARINGS ON FEBRUARY 3RD, 2015 FOR CONSIDERATION AND ACTION. AND 4) CAUSE A NOTICE TO BE PUBLISHED IN A NEWSPAPER OF GENERAL CIRCULATION ONCE A WEEK FOR TWO CONSECUTIVE WEEKS ANNOUNCING THE FEBRUARY 3RD, 2015 PUBLIC HEARING WHERE CENTURYLINK' S PROPOSED CABLE TV LICENSE WILL BE DISCUSSED AND CONSIDERED BY COUNCIL. THE FIRST PUBLICATION SHALL BE PUBLISHED BETWEEN JANUARY 11TH AND JANUARY 17TH, 2015 AND THE SECOND BETWEEN JANUARY 18TH AND JANUARY 24TH, 2015. Vice Mayor Barker SECONDED THE MOTION. VOTE • Unanimous. The motion carried. CHANGES/REPEAL OF CERTAIN PROVISIONS OF THE CITY CODE, VOLUME I, CHAPTER 14, CABLE TELEVISION City Attorney Joel Stern briefed the council on the item. Mayor Insalaco called for any discussion. There being no discussion, he called for a motion. Councilmember Waldron MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 19 OF 21 CHANGES/REPEAL OF CERTAIN PROVISIONS OF THE CITY CODE, VOLUME I, CHAPTER 14, CABLE TELEVISION: SCHEDULE PUBLIC HEARINGS ON JANUARY 20TH, 2015 (DISCUSSION, PUBLIC INPUT ONLY) AND FEBRUARY 3RD, 2015 (DISCUSSION, PUBLIC INPUT AND COUNCIL ACTION) FOR AN ORDINANCE AND RESOLUTION MODIFYING APACHE JUNCTION CITY CODE, VOLUME I, CHAPTER 14, CABLE SYSTEMS. Councilmember Rizzi SECONDED THE MOTION VOTE. Unanimous The motion carried SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Vice Mayor Barker announced the executive session and work session scheduled for Monday, January 19, 2015, have been cancelled due to Martin Luther King, Jr. Day. She MOVED THAT AN EXECUTIVE SESSION AT 5. 45 P.M. AND A WORK SESSION AT 7 : 00 P.M. BE HELD ON TUESDAY, JANUARY 20, 2015, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY. Councilmember Waldron SECONDED THE MOTION. VOTE: Unanimous. The motion carried. CALL TO THE PUBLIC: . None ADJOURNMENT Mayor Insalaco adjourned the meeting at 8: 05 p.m Consent Agenda Items are as follows : 1 Acceptance of Agenda. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 20 OF 21 eN 2 Approval of Minutes of Regular Meeting of December 16, 2014 . ACCEPTED THIS 20TH DAY OF JANUARY, 2015, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 20TH DAY OF JANUARY, 2015. JOHN S. INSALACO Mayor ATTEST• KATHLEEN CONNELLY City Clerk CITY COUNCIL MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the City Council of the City of Apache Junction, Arizona, held on the 6th day of January, 2015 I further certify that the meeting was duly called and held and that a quorum was present. Dated this 8th day of January, 2015. KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 21 OF 21 .0011. Amos City of Apache Junction, Arizona 300 E Superstition '77+ 'e ; Boulevard y �' Apache Junction,AZ 85119 • Agenda Item Cover Sheet Agenda Item No 3 File ID: 14-643 Sponsor. Heather Patel Agenda Date: 1/20/2015 Index- Community Infrastructure In Control-City Council Meeting r•. Consideration of approval of Resolution No 15-06, recommending the city's Fiscal Year 2015 Local Transportation Assistance Fund II allocation be directed to the Apache Junction Active Adult Center(dba East Valley Adult Resources)for support of transportation services and authorizing the Mayor to sign a pass-through agreement Attachments City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 eN J^ 0....„ ii City of Apache Junction / gQiZ pN Development Services Department DATE• January 7, 2015 TO: The Honorable Mayor and City Council THROUGH George Hoffman, City Manager Larry Kirch, Development Services Director Roger Hacker,Revenue Resources Manager FROM: Heather Patel, Grants Coordinator SUBJECT: Local Transportation Assistance Fund II Application for Fiscal Year 2015 REQUEST The mayor and city council shall consider proposed Resolution No 15-06 recommending the city's Fiscal Year 2015 Local Transportation Assistance Fund(hereinafter"LTAF")II allocation be directed to the Apache Junction Active Adult Center(dba East Valley Adult Resources)for support of transportation services and authorizing the Mayor to sign a pass-through agreement BACKGROUND Pursuant to the court order filed in Paisley v Darwin,the State Treasurer resumed distnbution of multi-state lottery game proceeds to the Public Transportation Fund in Mancopa County in Fiscal Year 2012 To date, the Legislature has not enacted any statute that would supersede the court order and Valley Metro Regional Public Transportation Authority ("RPTA") continues to receive monthly distnbutions of lottery revenues for public transportation purposes Lottery revenues for FY2015 are estimated to be$11,262,600 Mancopa County and jurisdictions within the county that receive LTAF funding are required to use the funding for public transportation. There is no local match requirement for these funds Public transit is defined as any service, vehicle(s), or support facility for a vehicle(s), intended for the purpose of conveying multiple passengers (i.e. typically 5 or more) and which meets applicable state and federal safety and accessibility laws, rules, and regulations The definition also includes the planning and administrative support for such services. It is the intent of the program to provide funds for the purpose of providing transit service or facilities that is available to the following populations • The general public, • Elderly persons, • Persons with disabilities, • Welfare recipients and "low-income"persons engaged in employment activities. Planning& Zoning—Building& Safety—Revenue Development 300E Superstition Boulevard • Apache Junction,AZ 85119 • Ph (480)474-5083 • Fax(480)982-7010 FundingOIN will be distributed directly to eligible jurisdictions in the county and includes Maricopa County, and cities and towns within the county In the case of private, not-for-profit agencies and private, for-profit transit providers, the city receiving the LTAF fundmg must enter into an agreement with the proposed operator to provide the transportation service approved by the city council The agreement, accompanied by council resolution,must be available to Valley Metro RPTA as evidence of the agreement. DISCUSSION To receive the funds allocated to Mancopa County communities, jurisdictions must apply annually In FY 2015, Apache Junction will receive $867 An application was submitted to the Valley Metro Regional Public Transportation Authonty. RECOMMENDATION Staff respectfully recommends the city council approve Resolution No 15-06 recommending the city's Fiscal Year 2015 Local Transportation Assistance Fund II allocation be directed to the Apache Junction Active Adult Center for support of transportation services and authorizing the mayor to sign a pass-through agreement. ACTION REQUIRED Consideration for approval under the consent agenda Attachment 1 Resolution Number 15-06 Attachment 2 Grant pass-through agreement between the City of Apache Junction and East Valley Adult Resources /IN Planning&Zoning—Building& Safety—Revenue Development 300 E Superstition Boulevard •Apache Junction,AZ 85119 • Ph (480)474-5083 •Fax(480)982-7010 RESOLUTION NO. 15-06 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING SUBMISSION OF A GRANT APPLICATION TO THE VALLEY METRO REGIONAL PUBLIC TRANSPORTATION AUTHORITY FOR PARTICIPATION IN ITS FISCAL YEAR 2015 LOCAL TRANSPORTATION ASSISTANCE FUND II PROGRAM WHEREAS, the City of Apache Junction is desirous of meeting the transportation needs of its citizens, and WHEREAS, East Valley Senior Adult Resources, Inc , which manages the Apache Junction Active Adult Center, has requested assistance from the City in meeting the transportation needs of senior citizens residing within the City limits; and WHEREAS, pursuant to Arizona Revised Statutes Section 28-8101, et seq. , the Valley Metro Regional Public Transportation Authority ( "RPTA" ) is administering the Local Transportation Assistance Fund (hereinafter "LTAF" ) II Program, and WHEREAS, the activities within this grant address identified community needs; and WHEREAS, a grantee of LTAF II funds is required to comply with the program guidelines and federal statutes and regulations NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS 1) The Mayor and City Council of the City of Apache Junction authorize application to be made to the RPTA for Fiscal Year 2015 LTAF II funds 2) The City Manager or his designee is authorized to sign an application for receipt and use of these funds in an amount not to exceed $867 . 00 for East Valley Adult Resources, Inc. for its transportation program for the Apache Junction Active Adult Center. 3) The City Manager or his designee, is authorized to take all actions necessary to implement and complete the activities submitted in said grant . 4) The application for Maricopa County LTAF II funds meets the program requirements for the transportation of senior RESOLUTION NO. 15-06 PAGE 1 OF 2 citizens, persons with disabilities and/or the general public 5) The City of Apache Junction shall comply with all LTAF II guidelines, federal statutes and regulations applicable to the LTAF II Program. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF , 2015 . SIGNED AND ATTESTED TO THIS DAY OF , 2015 . JOHN S INSALACO Mayor ATTEST KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM. RICHARD J. STERN City Attorney RESOLUTION NO 15-06 PAGE 2 OF 2 When recorded return to• Richard Joel Stern, Esq Apache Junction City Attorney 300 East Superstition Blvd Apache Junction, AZ 85119 —" FISCAL YEAR 2015 GRANT PASS THROUGH AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND EAST VALLEY ADULT RESOURCES THIS GRANT PASS THROUGH AGREEMENT (the "Agreement") is made as of the day of 2015, by and between CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation ("City") and East Valley Adult Resources, a nonprofit agency ("EVAR"). City and EVAR are sometimes referred to herein collectively as the "Parties," or individually as a "Party." RECITALS A EVAR is a nonprofit organization which provides social, recreational, fitness, advocacy, and transportation services at the Apache Junction Active Adult Center for Apache Junction residents. B. EVAR desires to utilize Local Transportation Assistance Fund II ("LTAFII") funding for transportation services in Apache Junction. C. The Valley Metro Regional Public Transportation Authority ("RPTA") desires to convey to City a portion of its annual allocation required to be paid to local governments for the benefit of public transportation, pursuant to a court order filed in Paisley v. Darwin, U S. Dist. Ct (Ariz ), No. CV-10-1253-PHX-DGC, 2011 WL 3875992, resuming distribution of multi-state lottery game proceeds to the Public Transportation Fund in Maricopa County,for disbursement by City to EVAR D. City desires to disburse the aforementioned contribution to the EVAR and to set forth the mutual understandings between City and EVAR. E There is a need for mutual cooperation for a pass through of grant funds from RPTA to City and ultimately to East Valley Adult Resources. F. Mutual cooperation would result in EVAR's obtaining assistance from City, which translates to public savings. 1 G. The Parties have mutual interests in this project and wish to enter into this Agreement with certain terms and conditions. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual promises and covenants set forth herein, and for other consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows: 1. ACCURACY OF THE RECITALS: The Parties hereby confirm the accuracy of the Recitals set forth above, which are incorporated herein by this reference. 2. CITY'S OBLIGATIONS: City agrees to do all of the following: a. Disburse the aforementioned RPTA contribution to EVAR. b. Review copies of all reports and documents sent to the RPTA by EVAR related to funded project 3. EVAR'S OBLIGATIONS: EVAR agrees to do all of the following a. Hold harmless the City of Apache Junction and its agents for any acts or omissions by City, its elected officials, appointees, and employees. b. Provide to the City of Apache Junction a copy of all reports and documents sent to the RPTA related to funded project no later than 30 days after their submission to RPTA. 4. Purpose. The purpose of this Agreement is to set forth the rights and responsibilities of the Parties with respect to the acceptance and distribution of the contribution to EVAR. 5 Funding Schedule. RPTA shall deliver a one-time payment of $865.00 to the City for disbursement to EVAR for the provision of transportation services at the Apache Junction Active Adult Center ("Center"). The purpose of the contribution is to provide City residents with transportation to the Center, Center Programs, local medical appointments, and local shopping hubs. 6. Term. The Term of this Agreement is one calendar year from the execution date 2 7 Indemnification and Hold Harmless. EVAR shall indemnify, defend and hold harmless the City, its Mayor and City Council, appointees, employees and agents from and against any and all suits, actions, legal or administrative proceedings, claims, demands, liens, losses, fines or penalties, damages, liability, interest, fees for attorneys, consultants and accountants or costs and expenses of any kind and nature, resulting from or arising out of the negligence or willful misconduct of City, its Mayor and City Council, appointees, employees and agents in performing the duties set forth in this Agreement 8. Transactional Conflicts of Interest. The Parties acknowledge that this Agreement is subject to cancellation pursuant to the provisions of A.R S § 38-511. 9 Waiver. No waiver, whether written or tacit, of any remedy or provision of this Agreement shall be deemed to constitute a waiver of any other provision hereof or a permanent waiver of the provision concerned, unless otherwise stated in writing by the Party to be bound thereby 10. Severability City and RPTA each believe that the execution, delivery and performance of this Agreement are in compliance with all applicable laws. However, in the unlikely event that any provision of this Agreement is declared void or unenforceable (or is construed as requiring City to do any act in violation of any applicable laws, including any constitutional provision, law, regulation, or City Code), such provision shall be deemed severed from this Agreement and this Agreement shall otherwise remain in full force and effect; provided that this Agreement shall retroactively be deemed reformed to the extent reasonably possible in such a manner so that the reformed agreement (and any related agreements effective as of the same date) provide essentially the same rights and benefits (economic and otherwise) to the Parties as if such severance and reformation were not required. Unless prohibited by applicable laws, the Parties further shall perform all acts and execute, acknowledge and/or deliver all amendments, instruments and consents necessary to accomplish and to give effect to the purposes of this Agreement, as reformed. 11. No Third Party Beneficiary Rights. The Parties agree that no third party rights attach to this agreement. 12. Applicable Law and Venue: The terms and conditions of this Agreement shall be governed by and interpreted in accordance with the laws of the State of Arizona Any action at law or in equity brought by either party for the purpose of enforcing a right or rights provided for in this Agreement, shall be tried in a court of competent jurisdiction in Pinal County, State of Arizona. The Parties hereby waive all provisions of law providing for a change of venue in such proceeding to any other county. In the event either party shall bring suit to 3 enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition in this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs including: all litigation and appeal expenses, collection expenses, reasonable attorneys' fees, necessary witness fees and court costs to be determined by the court in such action. 13. Indemnification: To the fullest extent permitted by law, Consultant shall defend, indemnify and hold harmless City, its elected and appointed officers, officials, agents, and employees from and against any and all liability including but not limited to demands, claims, actions, fees, costs and expenses, including attorney and expert witness fees, arising from or connected with or alleged to have arisen from or connected with, relating to, arising out of, or alleged to have resulted from the acts, errors, mistakes, omissions, work or services of Consultant, its agents, employees, or any tier of Consultant's subcontractors in the performance of this Agreement. Consultant's duty to defend, hold harmless and indemnify City, its Special Districts, elected and appointed officers, officials, agents, and employees shall arise in connection with any tortious claim, damage, loss or expense that is attributable to bodily injury, sickness, disease, death, or injury to, impairment, or destruction of property including loss of use resulting therefrom, caused by an Consultant's acts, errors, mistakes, omissions, work or services in the performance of this Agreement including any employee of Consultant, any tier of Consultant's subcontractor or any other person for whose acts, errors, mistakes, omissions, work or services Consultant may be legally liable. 14. Notices. Except as otherwise required by law, any notice required or permitted under this Agreement shall be in writing and shall be given by personal delivery, or by deposit in the United States mail, certified or registered, return receipt requested, postage prepaid, addressed to the Parties at their respective addresses set forth below, or at such other address as a Party may designate in writing pursuant to the terms of this Section, or by telecopy or telefacsimile machine, or by any nationally recognized express or overnight delivery service (e.g. Federal Express or UPS), delivery charges prepaid: If to City: City of Apache Junction Attn City Manager 300 E. Superstition Blvd. Apache Junction, Arizona 85119-2899 Telephone: (480) 474-5066 Facsimile. (480) 474-5110 If to EVAR. East Valley Adult Resources Attn. Executive Director 45 West University Suite A - Mesa, Arizona 85201 4 Telephone. (480) 964-9014 Facsimile: (480)898-7306 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above. EAST VALLEY ADULT RESOURCES, an Arizona nonprofit organization By: Dan Taylor Its: President and CEO CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation By. John S. Insalaco Its: Mayor ATTEST. By: Kathy Connelly, City Clerk APPROVE AS TO FORM: By. Richard J. Stern, City Attorney 5 City of Apache Junction, Arizona 300Bouleardition r`z. Agenda Item Cover Sheet Apache Junction,AZ 85119 -: Agenda Item No 4 41trz File ID: 14-644 Sponsor Heather Patel Agenda Date: 1/20/2015 Index Community Infrastructure In Control-City Council Meeting Consideration of approval of Resolution No 15-02, committing local funds as leverage for a Fiscal Year 2014 State Special Project application Attachments• 4006.. City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 p p,cHF�� 1 11014c) , City of A�z ache Junction „, � gRlZONP Development Services Department - " DATE: January 7, 2015 TO: The Honorable Mayor and City Council THROUGH- George Hoffman, City Manager em Larry Kirch,Development Services Director Roger Hacker,Revenue Resources Manager FROM Heather Patel, Grants Coordinator SUBJECT: Resolution No 15-02, committing local funds as leverage for a Fiscal Year 2014 State Special Project application REQUEST The mayor and city council shall consider proposed Resolution No 15-02,committing local funds as leverage for a Fiscal Year 2014 ("FY14")State Special Project("SSP")application BACKGROUND ' The City of Apache Junction is submitting an application for FY14 SSP funds in which the city may request up to$300,000 to be used over a two year penod of time These funds are a statewide competitive grant The city may retain up to 18%of these funds for administrative costs The application due date is February 19, 2015 In conjunction with the Fiscal Year 2014 Community Development Block Grant("CDBG") application,city staff conducted the required public participation process and held public emN meetings on October 1,2013 and November 19,2013 The city council approved under Resolution No 13-36,the submittal of a grant application for the FY14 SSP program for phase two of improvements to the Pueblo del Sol neighborhood. DISCUSSION As part of the application requirements for submission of an SSP application, a resolution is required if local funds are committed to the project Under the SSP program, leverage funding is ranked and rated higher when applications are being reviewed The resolution brads the city to leverage funding if the submitted applications as identified in Resolution No 13-36 are awarded. Should the application(s)be demed, the city is not liable for these funds The following budget is proposed Project admimstration=$30,000(grant) Planning& Zoning—Building& Safety—Revenue Development 300 E Superstition Boulevard • Apache Junction,AZ 85119 • Ph (480)474-5083 •Fax(480)982-7010 elk Project construction=$270,000 (grant) Project construction= $30,000(leverage) RECOMMENDATION Staff respectfully recommends the city council approve Resolution No 15-02, committing local funds as leverage ACTION REQUIRED Consideration for approval under the consent agenda Attachment One Resolution No 15-02 Planning& Zoning—Building& Safety—Revenue Development 300 E Superstition Boulevard •Apache Junction,AZ 85119 • Ph (480)474-5083 •Fax(480)982-7010 Adak RESOLUTION NO 15-02 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, COMMITTING LOCAL FUNDS AS LEVERAGE FOR FY 2014 STATE SPECIAL PROJECTS ("SSP") APPLICATION (S) WHEREAS, the City of Apache Junction has adopted Resolution No. 13-36 which authorizes submission of an application (s) to the State of Arizona Department of Housing ("ADOH" ) for SSP Funding; and WHEREAS, that application (s) indicates that $30, 000 will be committed by the City of Apache Junction as leveraged funds, in the form of cash or resources to be used to complete the project; and WHEREAS, the CDBG Program requires that all local leveraged funds/resources be committed in the form of a resolution by the governing body, and that such a commitment contain an opinion by the applicant ' s legal counsel that the leveraged funds represent a binding commitment, legally enforceable under State law. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: 1) The mayor and city council hereby commit $30, 000 in funds .� and resources to the FY13 SSP Program, to be used for project costs, contingent upon the receipt of the grant assistance. 2) That the mayor and city council of the City of Apache Junction hereby find that this commitment is legally binding based on the legal opinion of the city attorney, and that such funds will be available for an audit at the termination of the grant, if so required by ADOH. RESOLUTION NO 15-02 PAGE 1 OF 2 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THIS DAY OF 2015 . SIGNED AND ATTESTED TO THIS DAY OF 2015 . JOHN S. INSALACO Mayor ATTEST KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM RICHARD J. STERN City Attorney Amb. RESOLUTION NO. 15-02 PAGE 2 OF 2 City of Apache Junction, Arizona 300 E Superstition Boulevard it` Agenda Item Cover Sheet Apache Junction,AZ 85119 Agenda Item No 5 ZO$ File ID 14-645 Sponsor Heather Patel Agenda Date: 1/20/2015 Index. Community Development In Control. City Council Meeting .ter Consideration of approval of Resolution Nos 15-03 (Authority to submit), 15-04 (Committment of local funds), and 15-05 (Adoption of Housing Rehabilitation Guidelines) regarding the submission of a Fiscal Year 2014-15 State Housing Fund grant application Attachments. City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 ( iRHE4 o Z City of Apache Junction 4 •.., Development Services Department IlkOft QlZON DATE: January 7, 2015 TO. The Honorable Mayor and City Council oulIN THROUGH: George Hoffman, City Manager Larry Kirch, Development Services Director Roger Hacker, Revenue Resources Manager FROM Heather Patel, Grants Coordmator SUBJECT Resolution Nos 15-03, 15-04, and 15-05 regarding the submission of a Fiscal Year 2014-15 State Housing Fund grant application REQUEST The mayor and city council shall consider proposed Resolution Nos 15-03, 15-04, and 15-05 regarding the submission of a Fiscal Year 2014-15 State Housing Fund grant application 1)Resolution No 15-03 (Authority to Submit), 2)Resolution No. 15-04(Commitment of Local Funds), and 2)Resolution No 15-05 (Adoption of Housmg Rehabilitation Guidelines) The resolutions are mandatory components of the city's proposed Fiscal Year 2014-15 State Housing Fund ("SHF") application grant PP BACKGROUND Since 1985, the City of Apache Junction has utilized a variety of funding sources to offer a Housing Rehabilitation Program ("HRP") for local home owners The city began using SHF funds m 1996. Since 1985, the city has invested nearly$4 million in grant funds to address housing rehabilitation needs for over 228 owner occupied homeowners. DISCUSSION The Arizona Department of Housing("ADOH")has announced the next cycle of funding for owner occupied housing rehabilitation programs Completed applications are due on March 20, 2015. If approved by council, Apache Junction will request$275,000 m owner occupied housmg rehabilitation funds to complete the rehabilitation of seven owner-occupied residential properties As part of the city's application,resolutions are mandated by ADOH The attached resolutions meet the requirements of the SHF guidelines The required resolutions are. Planning&Zoning—Building& Safety—Revenue Development 300 E Superstition Boulevard • Apache Junction,AZ 85119 • Ph (480)474-5083 • Fax(480)982-7010 elk 1) authonzmg the submission of an application, 2)committing local funds as leverage to the project, and 3)adopting the community's Housing Rehabilitation Guidelines Resolution No. 15-03 authorizes the submission of a grant application Resolution No 15-04 reflects leverage funds allocated to the Fiscal Year 2014-15 SHF application The state requires leverage funds m the form of cash in order to rank and rate each application for fundmg The city will provide$28,000 as leverage to the project for payment of /, construction services and other related costs. The funding set aside for leverage will be allocated within the FY15-16 budget under non-departmental grant leveraging Resolution No 15-05 reflects changes to the city's Housing Rehabilitation Guidelines These changes have been updated to reflect changes required by ADOH and how the city's program has developed over the years Below is a brief descnption of those proposed changes, excluding minor grammatical and clarification changes. The changes may be found highlighted within the guidelines 1) The city is not permitted to use applicant's assets to determine their eligibility for the program. 2) Amencans with Disabilities Act standards for construction have been added as required by the state 3) It is no longer permitted for site built homes to replace manufactured homes 4) The city was required to include a clause regarding the relocation of homeowners should the need arise 5) It is not required HVAC contractors be BPI certified 6) A post audit is completed on each home as an additional measure to ensure proper construction was completed on the home RECOMMENDATION Staff respectfully recommends the city council approve Resolution Nos 15-03, 15-04, and 15- 05 ACTIONS REQUIRED Consideration for approval under the consent agenda Attachment 1. Resolution No. 15-03 Attachment 2 Resolution No 15-04 Attachment 3• Resolution No 15-05 including final revised HRGs Attachment 4• Housing Rehabilitation Guidelines including proposed revisions Planning&Zoning—Building& Safety—Revenue Development 300 E Superstition Boulevard •Apache Junction,AZ 85119 • Ph (480)474-5083 • Fax(480)982-7010 RESOLUTION No. 15-03 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE SUBMISSION OF AN APPLICATION (S) FOR STATE HOUSING FUNDS, WHICH MAY INCLUDE FEDERAL FUNDING THROUGH THE HOME INVESTMENT PARTNERSHIP PROGRAM OR STATE HOUSING FUNDS, CERTIFYING THAT SAIDr APPLICATION (S) MEET THE COMMUNITY' S HOUSING AND COMMUNITY DEVELOPMENT NEEDS AND THE REQUIREMENTS OF THE STATE HOUSING PROGRAMS, AND AUTHORIZING ACTIONS NECESSARY TO IMPLEMENT AND COMPLETE THE ACTIVITIES OUTLINED IN SAID APPLICATION (S) . WHEREAS, the City of Apache Junction is desirous of continuing affordable housing development activities, and WHEREAS, the State of Arizona is administering the State Housing Fund Program, and WHEREAS, the State Housing Fund requires that State Housing Funds benefit low income households; and WHEREAS, the activity in the application addresses the community' s low-income population housing needs; and WHEREAS, a recipient of State Housing Funds is required to comply with the program guidelines, State and Federal Statutes and regulations . NOW, THEREFORE, BE IT RESOLVED THAT BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS : 1) The Mayor and City Council of the City of Apache Junction authorize applications to be made to the State of Arizona for funding from the State Housing Fund, 2) Mayor John S. Insalaco is authorized to sign applications and contracts or grant documents for receipt and use of these funds, 3) Mayor John S Insalaco is authorized to take all actions necessary to implement and complete the activities submitted in said applications, and RESOLUTION NO 15-03 PAGE 1 OF 2 4) The Mayor and City Council of the City of Apache Junction will comply with all State Housing Fund Program Guidelines, State and Federal Statutes and regulations applicable to the State Housing Fund Program (HOME program and/or State Housing Trust Fund) and the certifications contained in the (these) application (s) . .., PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THIS DAY OF 2015 SIGNED AND ATTESTED TO THIS DAY OF 2015 JOHN INSALACO Mayor ATTEST. KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: RICHARD J STERN City Attorney RESOLUTION NO. 15-03 PAGE 2 OF 2 RESOLUTION NO. 15-04 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA COMMITTING LOCAL FUNDS AS LEVERAGE FOR A FY2014-15 STATE HOUSING FUND APPLICATION WHEREAS, the City of Apache Junction has adopted Resolution No 15-03 which authorizes submission of an application (s) to the State of Arizona, Department of Housing ("ADOH") for State Housing Fund ("SHF") funds for FY2014-15, and WHEREAS, that application indicate that $28, 000 will be committed by the City of Apache Junction as leveraged funds, in the form of cash or resources to be combine with State funds to complete the program, and WHEREAS, the SHF Program requires that all local leveraged funds/resources be committed in the form of a resolution by the governing body, and that such a commitment contain an opinion by the applicant ' s legal counsel that the leveraged funds represent a binding commitment, legally enforceable under State laws NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS 1) The Mayor and City Council hereby commit $28 , 000 in funds and resources to the SHF Program, to be used for project costs, contingent upon the receipt of the FY2014-15 SHF assistance 2) That the Mayor and City Council of the City of Apache Junction hereby find that this commitment is legally binding based on the legal opinion of the City attorney, and that such funds will be available for an audit at the termination of the grant, if so required by ADOH. RESOLUTION NO. 15-04 PAGE 1 OF 2 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF , 2015 SIGNED AND ATTESTED TO THIS DAY OF 2015. JOHN S INSALACO Mayor ATTEST KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM RICHARD J STERN City Attorney RESOLUTION NO 15-04 PAGE 2 OF 2 RESOLUTION NO 15-05 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE ADOPTION OF OWNER OCCUPIED HOUSING REHABILITATION GUIDELINES DATED FEBRUARY 1, 1994 , AS AMENDED, IN RELATION TO A HOUSING REHABILITATION ACTIVITY. WHEREAS, the City of Apache Junction, Arizona, is desirous of continuing an owner-occupied housing rehabilitation program; and WHEREAS, this program is anticipated to be funded with funds provided by the State of Arizona Department of Housing ("ADOH") , and WHEREAS, ADOH requires that every local government requesting funds for housing rehabilitation adopt specific guidelines for such a program; and WHEREAS, the City of Apache Junction has developed such owner-occupied Housing Rehabilitation Guidelines ("HRGs") dated February 1994, as amended, which have been previously approved by ADOH. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS- 1) The City Council of the City of Apache Junction, Arizona, hereby adopts such owner-occupied HRGs, dated February 1994 , as amended in Attachment A, rook which shall be used to implement its housing rehabilitation program; and 2) The City of Apache Junction, Arizona, shall utilize such owner-occupied HRGs, without revisions, except those authorized by the Mayor Such revisions shall be submitted to ADOH by the City 10 working days before such amended guidelines are effectuated RESOLUTION NO 15-05 PAGE 1 OF 2 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF , 2015. SIGNED AND ATTESTED TO THIS DAY OF 2015 JOHN S. INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM RICHARD J STERN City Attorney Amok RESOLUTION NO. 15-05 PAGE 2 OF 2 etPYACHE✓G2� O (-3 �z 4R1ZONP CITY OF APACHE JUNCTION, ARIZONA HOUSING REHABILITATION PROGRAM GUIDELINES As Adopted by the City Council on February 1, 1994 Modified by the City Council on January 17, 1995 Addendum by the City Council on March 21, 1995 Modified by the City Council on June 20, 1995 Modified by the City Council on March 7, 2000 Modified by the City Council on May 15,2001 Modified by the City Council on February 5, 2002 Modified by the City Council on January 16, 2007 Modified by the City Council on June 5, 2007 Modified by the City Council on November 18, 2008 Modified by the City Council on December 15, 2009 Modified by the City Council on December 6, 2011 Modified by the City Council on January 15, 2013 Modified by the City Council on April 1, 2014 Modified by City Council on January 20, 2015 The city council of the City of Apache Junction adopts the following Housing Rehabilitation Guidelines to assist the city in administering the city's Housing Rehabilitation Program This program is intended to provide safe and decent housing to City of Apache Junction residents by offering funding options to assist homeowners with the rehabilitation or modification of their home. PROGRAM PURPOSE (GOALS) 1 Eliminate health and safety hazards in homes, 2. Benefit very low-, low- and moderate-income residents; and 3 Improve neighborhoods and encourage stability City of Apache Junclion Housing Rehabilitation Program Guidelines, page 1 of 30 TABLE OF CONTENTS Program Purpose and Goals 1 Program Design 3 Target Area 3 Eligibility Requirements 3 Property Standards 6 Allowable Work Items 6 Non-allowable Work Items 8 Rehabilitation Assistance Plans 8 Emergency Housing Repair 8 Housing Accessibility 8 Housing Rehabilitation 9 Replacement 9 Permit Fee Fund 9 Deferred Payment/Forgivable Loans 11 Exceptions to the Maximum Allowed 11 Recapture Period 11 Loan Servicing Policy/Subordination 12 Revolving Loan Fund/Program Income 12 Third Party Income Verification 12 Method for Determining After Rehab Value 13 Homeowner Information 14 Contractor Information 17 Housing Maintenance and Homeowner Education 23 Energy Efficiency Guidelines 23 Lead Based Paint Requirements 23 Conflict of Interest 24 Complaint and Grievance Procedures 25 Marketing 27 Staffing and Administrative Review 28 Non-Discrimination 28 Assistance to Applicants 28 Fair Labor Standards 29 Applicable Documents 29 Changes to Program Guidelines 29 Forms 29 City of Apache Junction Housing Rehabilitation Program Guidelines, page 2 of 30 PROGRAM DESIGN The focus of the Housing Rehabilitation Program (hereinafter "HRP") is to increase the life and improve the livability of homes owned by very low-, low- and moderate- income families by correcting code violations, solving health and safety issues, addressing accumulated deferred home maintenance projects, and providing sustainability by weatherizing homes Funds for the program are primarily provided through the: 1) Community Development Block Grant Program ("CDBG") and 2) State Housing Fund ("SHF") including HOME and State Housing Trust Funds as administered by the Arizona Department of Housing ("ADOH") Owner-occupied housing rehabilitation ("OOHR") assistance to homeowners in the SHF funded portion of the city's HRP may be in the form of deferred payment/forgivable loans. OOHR assistance to homeowners in the CDBG funded portion of the city's HRP may be in the form of grants or deferred payment/forgivable loans Unless specifically stated to the contrary, comments contained in these guidelines are applicable to both the CDBG and SHF funded portions of the city's HRP TARGET AREA The program will be open to all full-time permanent residents who live within the incorporated boundaries of the City of Apache Junction, excluding those who live in designated ineligible areas or structures as outlined in the eligibility requirements below CDBG funds may only be used in the Pinal County portion of the city ELIGIBILITY REQUIREMENTS -- To be eligible, the applicant and the property to be rehabilitated must meet the following criteria • Located within the incorporated boundaries of the City of Apache Junction, excluding the Maricopa County area • Feasible for rehabilitation under the time and monetary constraints of the program • Owned and occupied by a full-time permanent resident of Apache Junction. • Applicants must have a verifiable income that falls below 80% of the area median income as indicated by The US Department of Housing and Urban Development and the State of Arizona — State Housing Fund Program income City cf Apache Junction Housing Rehab//itation Program Guideiines page 3 of 30 limits for very low-, low- and moderate-income families Income guidelines are updated annually. Income verification is valid for a period of six (6) months Upon expiration of income verification information, applicants must complete and submit new income verification documentation Income must be anticipated and verifiable for the next 12 months Required documentation of income can be found under Third Party Income Verification within this document. A . • Provide proof of homeowner's insurance • For the purposes of eligibility, self-help or "sweat" equity are not allowable forms of equity • The current owner must have occupied the structure for at least one (1) year prior to program entry. • Preference will be given to households applying for funding that meet one of the following criteria 1)be elderly(62 years of age or older); 2) have a disability (a legally recognized physical/mental/emotional condition that limits the performance of daily living skills), or 3) have minor child (ren)age 17 and under related to head of household residing in the residence. • A.R.S. 1-501 and 1-502 requires that all homeowners who receive services under the program shall provide proof of lawful presence in the United States including a sworn affidavit that the required documentation is true under penalty of perjury. • Owner is to complete any recent construction project underway prior to the city's approval of rehabilitation assistance. • Manufactured and mobile homes are deemed eligible contingent upon 1) applicant (s) having owned and occupied both property and dwelling for one (1) year prior to program entry; and 2) the home being permanently attached to a foundation, either as a pre-existing condition or as a work element of the HRP. • Properties in non-conforming zoning, properties located within 1,000 feet of an explosive/flammable operation, properties with open, unresolved building or code compliance cases and homeowners unwilling to follow the City of Apache Junction Program Guidelines, are not generally eligible for rehabilitation under this program. • Homes of historical value may only be eligible upon favorable review by the State Historic Preservation Office • Manufactured homes that were built before June 1976 are not eligible to City of Apache Junction Housing Rehabilitation Program Guidelines, pace 4 of 30 receive housing rehabilitation funding, however they are eligible for emergency and housing accessibility assistance • The rehabilitation of dwellings located in the 100-year floodplain are not eligible for participation in the rehabilitation program • Properties that are classified "non-conforming" are not generally eligible for rehabilitation However, if the proposed rehabilitation is non-structural and there are no properties waiting to be rehabilitated, nonconforming properties that meet all other eligibility criteria may be considered ♦ Properties with an open building or code case are generally not eligible for rehabilitation However if the case is relating to a correctable building condition HRP funds can correct under the requirements of the program, then the unit will be deemed eligible. • Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage, however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property Mortgage payments and insurance premiums must all be current is there Is the borne someone who is Are yoU located within - '"enteritis.age of thetityEmits& 62,underthe a US Apache age of 18,or Citizen? !unction? 'disabled living in the home? Are you low Click here to view Are you a income and full time Oe you have=. wir to homeowners-. ^� the income limits for permanen provide tnwranoe? documentseo program eligibility. t resident? n of income? A, if you have answered yes to Have you all of the Do youp. is the home owned and h ated questions, ownyour lived in our fiome end y outside of a CONGRATULATI land? r home for floodplain? ONS,YOU MAY one year? QUAtIFYI PROPERTY STANDARDS The property standards that must be achieved as a result of assisted rehabilitation are established by the most recent state and local building codes, the Federal City of Apache Junction Housing Rehabilitation Program Guidelines page 5 of 30 Housing Quality Standards, Arizona Department of Housing's Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weathenzation Standards, the City of Apache Junction Housing Rehabilitation Program Construction Guidelines, the Uniform Federal Accessibility Standards and the Americans with Disabilities Act, as applicable and needed by the homeowner The city's Energy Efficiency requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE 62.2-2010, Energy Star, and Standardized Work Specification ALLOWABLE WORK ITEMS HOME guidelines require an entire dwelling be brought up to local code A preliminary property inspection is completed to assist with ensuring homes meet Housing Quality Standards ("HQS") and are safe, sanitary and decent Priorities have been established for determining the work that will be completed in the eligible homes 1 Code Violations 2 Issues of Health and Safety 3 Weatherization Standards/ Energy Efficiency 4 Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work): 1 The age and the physical condition of the building, 2 The goal of the program (building revitalization or direct benefit), 3 Funds available for rehabilitation of each unit, and 4 Value of unit after rehabilitation The following levels are utilized to determine priorities for the HRP: • Level 1: Initial inspection reports must include items in Level 1 • Level 2 Items included on Level 2 are also considered critical but not as critical as those items in Level 1. Other items are considered less critical and should always be inspected but may not be rehabilitated • Level 3 The items on List 3 should be reviewed, and where feasible, corrected These items must also be included whenever substantial rehabilitation is taking place. City of Apache Junction Housing Rehabilitation Program Guidelines pope 6 of 30 r • Items from all levels must be included in the preliminary inspection report for all construction projects and those where the cost of rehabilitation exceeds 75% of the value of the property. Level 1 - Items that must be included in the inspection report and must be repaired or replaced 1. Lead Based Paint Assessment (only on properties built prior to 1978) 2. Hazardous Materials 3. Health and Safety Hazards 4 Stable and Weather Tight Roof 5 Electrical System— the unit must have a minimum 100-amp electrical service, with no unsafe conditions 6 Plumbing (including hot water) — Must be in good working order and be safe and sanitary 7 Heating and Cooling Systems — must be adequate and safe with a reasonable (three year) useful life 8. Egress in accordance with local health and safety codes 9 Trip Hazard (HQS Standard) Level 2 - Items that must be included in the inspection report and should be repaired or replaced 1. Structural soundness and integrity (including rotted or deteriorating materials and those impacted by termites and/or other wood-boring insects) 2. Siting of the structure and its relationship to water penetration that may impact structural integrity 3 Appropriate kitchen facilities including a sink and means of cooling and heating food to healthful standards. 4 If the structure has an attached garage, appropriately-rated fire wall between garage and living areas 5 Weatherization items The above mentioned items are first priority items that shall be included in every inspection report These items shall also be included in the Work Write-Ups (funds permitting) and shall receive priority in work to be completed as part of the rehabilitation project. Repair or replacement may take place based on the amount of available resources. Level 3 - Items that must be included in the inspection report and may be repaired or replaced 1 Debris that may be a fire hazard 2. All existing exposed surfaces painted or sealed and not presenting a health or safety hazard 3 Cabinetry City of Apache Junction Hous;ng Rehabilitation Program Guidelines, page 7 of 30 4 Finished flooring 5. Repair and replacement of doors and windows not presenting a health or safety hazard The above mentioned items shall be included in every inspection report and may be included in the Work Write-Up (funds permitting) These items generally result from deferred maintenance and are considered general improvements The City wishes to encourage contractors to buy locally whenever possible NON ALLOWABLE WORK ITEMS None of the program funds shall be used for temporary/long term relocation of applicants during periods of home rehabilitation/repair No funds shall be used to reimburse the homeowner for work completed REHABILITATION ASSISTANCE PLANS 1. EMERGENCY/MINOR HOUSING REPAIR PLAN A grant plan that assists homeowners in the elimination of an imminent threat to life, safety or health, the necessary repairs may include, but shall not be limited to roofs, floor repairs, window/door replacements, and wall and ceiling repairs The minimum assistance is$1,000 and the maximum assistance is$15,000 per recipient The grant may address no more than two (2) emergency conditions, unless approved by the Development Services Director, or his/her designee, due to some extenuating circumstances. A structure may be eligible for an Emergency Grant even though it may not meet structural integrity requirements. After a recipient has received services through the Emergency Housing Repair program they may not be eligible to receive additional services until five years after the completion of the project unless the emergency services enable the homeowner to remain in their home until the home can be rehabilitated under the city's Housing Rehabilitation Plan or replaced under the city's Replacement Plan Additionally, no single owner of a home may receive more than two emergency assistance grants 2. HOUSING ACCESSIBLITY PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to make their residence physically accessible Assistance can be either structural changes or purchase of durable medical equipment (if it becomes a permanent part of structure) and may include ramps, grab bars, handrails, raised toilets, lowered light switches, automatic door openers, visual alarms, transfer shower benches, and hand held showers. Grants are limited to $2,500 per recipient. This program is offered through the city's partnership with Community Action Human Resources Agency(CAHRA) or may be a component of another rehabilitation plan Ca} cf Apache Junction Housing Rehabilitation Program Guidelines, i sge 8 of 30 3. HOUSING REHABILITATION PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to address safe, sanitary, and decent housing rehabilitation issues. Rehabilitation projects may either be major or minor. Grants and deferred payment/forgivable loans are limited to a minimum of$1,000 and a maximum as required by the grant from which the funds will be expended, this amount may change each funding year. Mobile/manufactured homes and conventional, site-built homes have different maximum investments HOME funds cannot be utilized in the form of a grant. In the HOME Program, weatherization, emergency repairs, or accessibility projects may be undertaken only if the property is brought up to the State's rehabilitation standards upon completion When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired No additional HOME funds may be invested However, should the recipient receive any housing rehabilitation services in the form of a grant, they may not be eligible to receive additional services until five years after the completion of the project 4. REPLACEMENT PLAN A grant or deferred payment/forgivable loan plan that assists homeowners with the replacement of unsafe, hazardous living conditions by providing a new manufactured or site-built home This plan provides a maximum investment as stipulated within each grant from which the funds will be expended This amount may change each funding year and is intended for the construction of a new home or for the replacement of a manufactured home Manufactured homes may not be replaced with site built homes. HOME funds cannot be utilized in the form of a grant When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested The city will make .. every effort to eliminate or reduce the need for relocation during construction. Homeowners may be encouraged to find temporary housing with family or friends. In the event that no options exist, the city may use grant funds to pay for temporary accommodations. 5. PERMIT FEE FUND In 2003, the City of Apache Junction created a revenue fund (004-04420-422-225) in order to track and collect permit fees that have been paid for by contractors that are participating in the City's Housing Rehabilitation Program The fees that were collected were to be used to supplement and support the activities of the City's Housing Rehabilitation Program. These fees are collected in accordance with the City of Apache Junction City Code, Volume I, Chapter 7, Article 4-4 Sections A through I City of Apache Junction Housing Rehabilitation Program Guidelines, page 9 of 30 All relevant fees shall be due payable by the contractor prior to the start of construction on any City of Apache Junction housing rehabilitation project These fees will be tracked by the Housing Rehabilitation Program Coordinator ("HRPC") and reported to the Finance Director for deposit into the appropriate revenue account This account will be tracked to ensure accurate balance and expenditures Eligible expenses to be withdrawn from this account shall be minor repair items that are eligible under the City of Apache Junction's Housing Rehabilitation Program and the adopted Housing Rehabilitation Guidelines Recipients of these funds, however, must be homeowners that are not eligible under the same guidelines or available funding programs These repairs must be determined an emergency by the Program Coordinator Further, the Coordinator must have found that there is no other funding or community assistance can be located for the homeowner Eligible homeowners must be either elderly (over the age of 62), disabled, or have children under the age of 18 occupying the home and the total household income must not exceed 80% of the area median income When an expense is determined to be eligible to be charged to this account, the Coordinator will submit a check request along with an invoice for payment to the finance department. The maximum amount payable toward any project shall be $1,000 unless otherwise approved by the Development Services Director Emergency Housing Replacement Rehabilitation Rehabilitation A Replacement may be provided to Eligible Homes• Eligible Homes homeowners when the cost to 1)Single family homes,manufactured 1)Single family; rehabiltate their home exceeds the homes,condos,and townhomes; maximum investment allowable. 2)Post-1976 manufactured homes 2)Pre-1976 manufactured homes, affixed to a foundation; Replacement homes will be site built 3)Manufactured homes affixed to a 3)Condos and town homes; homes,where zoning allows for such foundation; 4)Homes without embumbrances e.g. construction 4)Homes with encumbrances e.g reverse mortgage and liens,excluding a reverse mortgage and liens excluding a first mortgage_ firstmortgage Manufactured homes may be used as a replacement in areas where zoning Eligible items does not allow for site built homes Eligible Items` 1)Complete rehabilitation of borne; 1)Acessibility improvements, 2)Address all code,health and safety A lien is placed on the home for the 2)Health and safety improvements, items; extent of the recapture period which is 3)Limited to two improvements per 3)Incorporate energy efficiency based upon the total investment grant. • improvements; amount. 4)Accessibility items. Assistance Provided Grant not to exceed$15,000 Assistance Provided Limit assistance to two times per home Deferred Payment Forgivable Loan Single family home maximum investment$60,000 Manufactured home maximum investment$20,000 No additional assistance during recapture period A lien is placed on the home for the . extent of the recapture period which is based upon the total investment amount. • City of Apache Junction Housing Rehabilitation Program Guidelines, pace 10 of 30 DEFERRED PAYMENT/FORGIVABLE LOANS All deferred payment forgivable loans are secured by a lien and promissory note A percentage of the total assistance provided on forgivable loans will be forgiven on the anniversary date of the execution of the recording of the loan instruments throughout the recapture period, provided that the dwelling unit continues to be occupied by the original occupant or an income qualified immediate family member. The unforgiven balance of the loan shall become due and payable upon the sale of ,�.► the property. Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property HOME funds cannot be used in the form of a grant. The HRPC will be responsible for recording the required paperwork as determined by the loan. The lien will be recorded at the Pinal County Assessor's Office and will include applicable administrative costs and a contingency of 10% above the Contractor's Bid. The Deed of Trust will be placed on a tracking system by the HRPC who will track the loan calculating the amount of dollars that will be forgiven as each year passes until the loan has been completely forgiven as outlined in the HRGs. The HRPC will send a letter to the homeowner annually advising the homeowner of the status of their loan, identifying the amount forgiven and the amount that remains on the loan The city will be no lower than the first position on the lien of the home or second if a financial institution held first position prior to the city recording the loan documents. A letter to the homeowner shall provide a reminder that the city cannot subordinate the loan. EXCEPTIONS TO THE MAXIMUM ALLOWED The Maximum investment for each project is stipulated under each grant program from which the funding is expended This maximum may change with each funding year. However under no circumstance may the maximum per unit investment exceed that which is determined by the geographic area 221 (d) 3 per unit limits based on the number of bedrooms nor can the after rehabilitation value exceed the allowable amount set by HUD (see Method for Determining After Rehabilitation Value section below) RECAPTURE PERIOD •Investment of$1,000-' 5 Years $15,000 • When a recipient elects to receive assistance in the form of a deferred or forgivable loan, a •Investment of$15,001 recapture period applies The recaptured 10Years $40,000 period is based on the amount of funds invested in the assisted unit. Recipients may elect to have •Investment of$40,001 a recapture period that is longer than the required 15 Years -$75,000 period When a recipient receives a deferred .Investment of$75,001 30 ears and over City of Apache Junction Housing Rehabilitation Program Guidelines, page 11 of 30 .. �. payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested LOAN SERVICING POLICY/SUBORDINATION After execution of the loan, subordination agreements with lending institutions will not be honored since such practice is lending of city credit in violation of State constitutional law Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage; however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position. Should a refinancing request be made by the homeowner after the rehabilitation work has been completed and a lien has been placed on the structure and the request has been made prior to the end of the recapture period, the lien shall become due and payable upon refinancing to the city Thus, should the refinance be cash out, the city will require payment in full of the lien. The city will be no lower than first position on the lien of the home As noted above, the city cannot subordinate the loan in any manner REVOLVING LOAN FUND/PROGRAM INCOME The City of Apache Junction does not currently have a revolving loan fund. Therefore the City will track all loans. In the event a house that has received services is sold prior to the end of the recapture period, the city will enforce the repayment of the loan in the amount that remains unforgiven. These funds will then be immediately circulated into the Housing Rehabilitation Program and will be utilized prior to the use of any new grant funds However when utilizing HOME funds, any recaptured or repaid funds will be returned to the Arizona Department of Housing as retention of HOME funds is not allowed by the Arizona Department of Housing THIRD PARTY INCOME VERIFICATION Upon receipt of the application, the HRPC will verify eligibility based upon the homeowners income The definition of income is taken from 24 CFR Part 5 Gross Income will be used to calculate income for all members of the household over the age of 18 Income must be anticipated and verifiable for the next 12 months Typical required documents to verify income will include, but are not limited to 1. Bank Statements including checking and savings accounts, 2. Paycheck stubs including tips, commission and bonuses, and overtime; 3 Earned Interest and Assets: This amount is calculated into the income if over $5,000. Eligible assets include but are not limited to Value of Stock, Life City cf Apache Junction Housing Rehabilitation Program Guidelines, page 12 of 30 Insurance, 401 K, interest, CD's, Real Estate, Personal property not including home, 4. Social Security; 5. Welfare Assistance; 6. Alimony and Child Support, 7 Minors Income specifically disability payments; 8 If self employed, must include the past three (3) years income tax returns for net income, 9 Excluded items include earned income from minors (under age 18), full-time student income (ages 18-23), disabled persons' income, and food stamps Median Income Guidelines HUD updates the Median Income Guidelines on an annual basis The most current information can be found on the US Department of Housing and Urban Development website The city will utilize the HUD Income Calculator to determine income eligibility. https://www.onecpd.info/incomecalculator/ METHOD FOR DETERMINING AFTER REHABILITATION VALUE Beginning August 23, 2013 HUD has established the HOME Maximum After- Rehab Value Limits for owner occupied housing rehabilitation These limits will remain in effect and are updated as HUD issues new limits The new HOME value limit for existing housing to be used for owner occupied housing rehabilitation is 95 percent of the median purchase price for the area based on Federal FHA single family mortgage program data and other nation-wide data on the sales of existing housing To establish Project eligibility, after-rehabilitation value must be established prior to any work being performed The after- rehabilitation value may be established by one or more of the following methods: 1 Estimates of value Estimates of value by the subrecipient may be used Project files must contain the estimate of value and document the basis by which the value estimates were derived. (For example, a Real Estate Broker's price opinion with supporting comparable sales.) Websites such as quizzle corn, zillow.com and trulia.com may be used to determine an estimated value. 2 Appraisals Appraisals, whether prepared by a licensed fee appraiser or by a staff appraiser of the city, may be used Project files must document the appraised value and the appraisal approach used. 3. Tax assessments: Tax assessments for a comparable property located in the same neighborhood may be used to establish the after-rehabilitation value if City of Apache Junction Housing Rehabilitation Program Guidelines, 1,a0e 13 of 30 .•. the assessment is current and accurately reflects market value after rehabilitation HOMEOWNER INFORMATION Applications are available by mail, in the Development Services office, or obtained from the city's website at www alcity net/rehab by the applicant. Eligible applicants will be prioritized on a first come, first served basis, unless the nature of the project constitutes an eminent threat to health or safety, as determined by the Building Inspector STEP 1: Waiting List Once an application is approved and the homeowner is determined to be eligible to participate in the city's HRP, they will be placed on a waiting list. Homeowner's will be served based on two factors 1 A First Come - First Serve Basis 2 Based upon the funding availability of the program with which they are eligible The city has several housing programs. Based on their eligibility they may not qualify for all programs Applicants can remain on the waiting list for up to 18 months or more before receiving assistance The financial information provided with the application is valid for 6 months Therefore homeowner's may be required to re-submit financial information to re-certify they are eligible to participate in the program A typical timeline for services may be: Application is submitted Review of application (eligibility determination) 2 months Placed on waiting list up to 1 year Schedule initial meeting to discuss the program 2 months Schedule home inspection 2 months Determine work write up 2 months Procure contractor 4 months Signed documents/contracts 2 months Construction 3 months Final inspection 1 month STEP 2 Interview When the time has come to receive the benefits of the program an appointment will be scheduled to make a home visit to discuss the details of the program and sign an agreement All homeowners must be present. City cf Apache Junction Housing Rehabilitation Program Guidelines, page 14 of 30 There are two basic programs in which homeowner's may be eligible It will be determined which program would best suit their needs once an inspection of the home is completed and a cost estimate is determined. Following are the two programs: 1. Emergency Rehabilitation This program will address two emergency needs within the home. This program is provided in the form of a grant Once a homeowner receives this service, they may not be eligible for additional assistance for five years 2. Housing Rehabilitation This program will address all the necessary needs within the home under the requirements of the program Health and safety issues, code compliance and weatherization will be addressed. This program is provided in the form of a deferred payment loan which will place a lien on the property. A deferred payment loan means that over a given period of time, the loan will be forgiven so long as the homeowner remains in the home as their only and primary residence Once they receive this service, they may not be eligible for additional assistance until the loan has been forgiven This recapture period is dependent upon the amount of funds invested into the home. STEP 3 Home Inspection The city will complete an inspection on the home This inspection will help to determine what items will need to be completed on the home Below is information to help determine what items are eligible under the requirements of the program We would like to: Eliminate unsafe and hazardous conditions, Improve living conditions and extend the life of the home, Make the home accessible for family members with special needs, Bring the home to minimum safe property standards and local codes, Improve property values in the neighborhood, and Improve energy efficiency. Areas we can provide help include: The program will NOT: Electrical Accessibility Change of colors or styles Plumbing Insulation Cover routine maintenance Heating/Cooling Foundation Make the home look like new Roofing Bath facilities Walls Kitchen facilities Painting Hot water Windows/Doors Smoke alarms If the home was built before 1978, a Lead Paint Inspection will be conducted by a qualified contractor, as identified by the city. City cf Apache Junciron Housing Rehabiniation Program Guidelines. page 15 of 30 An Energy Audit will be conducted by a BPI certified contractor, as identified by the city Information provided by from the audit will assist the HRPC will creating a project scope STEP 4: Work Write-up and Bid Process After the inspections are complete a work write-up and cost estimate are determined to assist with the procurement of a contractor. The homeowner must approve the project scope prior to procuring a contractor. Priorities have been established for determining the work that will be completed in the eligible homes 1 Code Violations 2. Issues of Health and Safety 3. Weatherization Standards/ Energy Efficiency 4. Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work): 1 The age and the physical condition of the building, 2 The goal of the program (building revitalization or direct benefit); 3 Funds available for rehabilitation of each unit, and 4 Value of unit after rehabilitation. It is required that all projects competitively procure a licensed contractor to complete the work on the home The city will assist the homeowner in this process. The following is the process that will take place when procuring a contractor. A notice will be placed on the city's website and in the newspaper advertising a mandatory "pre-bid" meeting to be held at the home Contractors will arrive on that day along with the HRPC and will walk through the home and the work write up will be discussed Each contractor will be required to submit a bid to the City of Apache Junction's Office of the City Clerk on the date and time specified in the advertisement The contractor is not allowed to discuss any compensation with the homeowner If the contractor has any questions regarding the project and/or the bidding procedures they must contact the HRPC. Once the bids have been received, the city will review the information and determine if the contractors are eligible to participate in the program. There are requirements that each contractor must have in order to be eligible The City of Apache Junction is not the contractor, does not recommend contractors, does not choose the contractor and cannot guarantee the homeowner will be completely satisfied with the work completed The HRP will however work closely City of Apache Junction Housing Rehabilitation Program Guidelines, page 16 of 30 with the homeowner to help solve any problems and will help ensure the work completed is functional, meets applicable codes and regulations, and is of quality The HRP does however suggest the lowest most responsive bidder be the contractor awarded the project. Therefore the homeowner will be notified as to which contractor that is However the homeowner will be signing the contract with the contractor and as such may select a qualified and eligible contractor to complete the work on their home. It should be noted if the selected contractor is not the lowest bidder, the homeowner will be required to pay the difference of the bid amounts Once a contractor is selected all homeowners and the contractor will be asked to come to City Hall and sign the required contract documents A notice to proceed will be issued after the documents have been executed No work can begin until this has taken place STEP 5 Construction The contractor will be issued the notice to proceed and given a time frame to complete the construction on the home. The homeowner is not authorized to make changes to the project scope of work. All requests for changes must come through the city's HRPC STEP 6: Final Inspection The city will not release payment to the contractor until a final inspection has been completed on the home and the homeowner and city have signed off on the work completed All concerns should be discussed during this final walk through with the contractor. Although there is a warranty on their workmanship, it is important to discuss any concerns as soon as possible. CONTRACTOR INFORMATION Work Write-up After the application has been received, the information verified and funding is available, the HRPC will make an inspection of the property and prepare a work write-up and cost estimate Prior to creating the work write up, the city will request from a BPI certified contractor to complete an Energy Audit on the home (See Energy Efficiency Guidelines) The results of the audit will be incorporated into the work write up The HRPC and homeowner will thoroughly discuss the work to be done. Once the project scope is approved by the homeowner, the city will competitively procure a qualified contractor that meets all of the procurement requirements of the city and the Arizona Department of Housing. Work write-ups will be completed by the HRPC. Specific building materials and building methods will be left up to the discretion of the HRPC but must meet ICC City of Apache Junction Housing Rehabilitation Program Guidelines, page 17 of 30 Standards The City of Apache Junction Housing Rehabilitation Construction Guidelines will provide guidance on preparing the project scope. The HRPC will provide a rehabilitation cost estimate based on available information from recent projects completed. All new construction that requires substantial repair (more than 50%) of a system must meet the city's current building codes upon completion The rehabilitated home should at a minimum meet Section 8 Housing Quality Standards and/or all city building codes, whichever is more restrictive, shall govern The city wishes to encourage contractors to buy locally whenever possible. Request for bids An advertisement will be placed in the Arizona Republic a minimum of fourteen (14) days prior to the bid opening and/or an email notification will be sent to contractor's listed on the Housing Rehabilitation Program's Bid List The city will require bids from two or more licensed contractors to complete the work. Contractors will be required to meet all City of Apache Junction and Arizona Department of Housing requirements to be eligible to be awarded a contract. Requirements include a current City Privilege Tax License, a valid contractor license from the State of Arizona, listed on the Registrar of Contractors website and hold valid insurance. Additionally, any contractor participating in the rehabilitation program must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required. The City of Apache Junction encourages minority contractor participation in all projects to include Disadvantaged Business Enterprises e.g. Small Business Enterprises, Minority-owned Business Enterprises, and Women-owned Business Enterprises A copy of the City's Equal Employment Opportunity Policy is available on-line at http://www ajcity net/index aspx2nid=556 Protect walk-thru A mandatory pre-bid meeting will be scheduled prior to the acceptance of the bids to invite all potential contractors to the project site to review the project scope in order to offer an accurate quote The pre-bid meeting will also be utilized to answer questions and offer information to the contractors and property owner. The contractor may not contact the homeowner prior to this meeting Proposal submissions Proposals must be submitted by the date and time provided in the request for bids All proposals must be submitted in a minimum 8 1/2"x 11" letter sized envelope with the words "Sealed Bid Residential Rehab" along with the address, and the name of the owner of the project being bid. This must be clearly printed on the face of the envelope In addition, the name of the firm submitting the bid must be listed on the City of Apache Junction Housing Rehabilitation Program Guidelines; page 18 of 30 face of the envelope Failure to comply with the requirements of this paragraph may result in such a bid being considered invalid and returned unopened to the sender All bidders will be notified via email of the bid awards Addendums All addendums will be sent to interested bidders a minimum of 3 days prior to the bid opening via email Any changes in the finalized work write-up or specifications must be agreed upon in writing and signed by both the Homeowner and the HRPC before they become effective No change orders will be approved or paid if the work was completed prior to signed approval by the HRPC. Change orders shall not exceed 10% of the total bid price unless the additional work was requested by the HRPC. No side agreements between the Contractor and Homeowner will be allowed Codes and Standard Specifications The contractor is responsible for knowledge of the city's building codes All work must conform to Apache Junction Building Codes and/or meet approved Uniform Building Codes unless otherwise specified in writing. The property standards that must be achieved as a result of assisted rehabilitation are established by the city's building codes, the Federal Housing Quality Standards and the Arizona Department of Housing's Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weatherization Standards, and the City of Apache Junction Housing Rehabilitation Program Construction Guidelines. The city's Energy Efficiency requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE 62 2-2010, Energy Star, and Standardized .-•. Work Specification Privilege Tax License The contractor and all subcontractors must have an Apache Junction City privilege tax license prior to beginning work after being awarded a contract for services. Subcontractors must be named on the Contractor Bid Proposal. Bid Award Bid awards are done by the homeowner, however the City of Apache Junction's Housing Rehabilitation Program will recommend the lowest most responsible and responsive bidder The City of Apache Junction's Housing Rehabilitation Program reserves the right to reject any and/or all bids for reasons included but not limited to the following City cf Apache Jwnctror, Housing Rehabilitation Program Guidelines pace 19 of 30 1 The contractor is not licensed or his license is suspended or has been barred from federal procurement or no procurement programs 2 The contractor is not able to proceed with the project in a timely manner, has failed to complete past projects in a timely or workmanlike manner or has failed to respond appropriately to requests for warranty service. 3 The bid submitted is more than 15% above or below the estimate and may not be able to complete the project for this amount 4. The Contractor has failed to provide lien waivers as required below or has had mechanic's liens filed by suppliers or subcontractors on past projects 5 Bidding forms are improperly filled out, incomplete or not using the correct bidding forms provided Owner Bid Resection The owner may reject any or all bids without cause subject to the following provisions: 1. The owner may choose to reject the lowest bid and select a contractor other than the lowest bidder if the owner is willing to provide from his own funds an amount equal to the difference between the low bid and the selected bid. 2 The owner may reject all bids at any time up to three working days after the contract is closed The contract will be between the homeowner and the contractor. However the contractor and homeowner may not discuss the award or non-award of the project until the city has completed the required procurement process The city will serve only as an administrator/financier to the contract The contractor must be a licensed contractor in the State of Arizona, hold a city business license, be in good standing with the Registrar of Contractors, and not appear on the excluded parties listing thus shall have a DUNS and CCR number Delays in Awarding Contract Generally the contract will be closed and the work will begin within thirty (30) days of the date of bid submission. If thirty days has passed and no contract is signed, the Contractor may honor the original bid or withdraw the bid If the Contractor chooses to withdraw the bid, the project will be offered to the next qualified low bid or a new bid process will begin The HRPC reserves the right to negotiate any bid Subcontractors All subcontractors shall be named within the proposal submittal including their ROC numbers Upon award, subcontractors are required to submit certifications, hold a current City Privilege Tax License and a valid contractor license from the State of Arizona. Additionally, any subcontractor participating in the rehabilitation program City of Apache Junction Housing Rehabilitation Program Guidelines. rage 20 of 30 must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required Notice to Proceed The Notice to Proceed issued by the City of Apache Junction's HRPC will identify the start date All construction must begin within seven (7) days. A pre-construction conference will be held between the homeowner, the contractor and HRPC to discuss work items, furniture moving, and other questions in need of clarification. All contractors will be required to secure a building permit from the city and post it at the site Quality of Work Provided General Contractors, sub-contractors and their employees qualified to perform the installations for which they are responsible shall perform all work in a quality workmanlike manner. The job site is considered a federal location and must, at all times, be free from an individual chemical use All moved or effected equipment shall be returned to a completely functional nature The Contractor will make provisions for the fact that homeowners will, at all times, occupy this dwelling during the course of construction and need basic services at day's end Permits The permit application for the project is prepared and submitted by the Contractor The Building Permit will be issued upon receipt of payment from the Contractor The permit must be picked up before beginning any work on the property Follow the Building Department's procedures for scheduling inspections. The Contractor is responsible for all necessary inspections of the property. Clean-up The job site should be thoroughly cleaned during and upon completion of the project. All construction debris of every sort should be removed along with other debris that may have been on the property or collected during the work Compact, grade and rake any area disturbed by construction for proper drainage Construction debris is to be hauled to the landfill and disposed of in accordance with all local ordinances. Under no condition is debris to be left for city pick-up. Timely Manner Work should proceed in diligent manner after start-up. Progress inspections will be made almost daily. While material or subcontractor delays are sometimes unavoidable, extended periods without progress or repeated unnecessary delays in completing a project may constitute grounds for rejecting future bids The City cf Apache Junction Housing Rehabilitation Program Guidelines, page 21 of 30 contractor is expected to complete the job within the timeframe indicated in the contract There is a two-year warranty on workmanship and materials Owner Selections The homeowner is allowed to select the following items: 1. One interior paint color 2. Exterior wall and trim color 3 Counter top color 4 One carpet color 5 One floor tile (grout to be sealed) The contractor must supply the homeowner with a minimum of three (3) color samples Payment No payments shall be made to the contractors without written approval from the HRPC and the homeowner, with the exception of disputed discrepancies which may be resolved and paid with the signature of the HRPC. The HRPC will monitor all rehabilitation work during construction If progress payments are called for in the contract, the homeowner and the HRPC will make an inspection of the work outlined in the work write-up scheduled for completion before a progress payment will be made. A contractor may request a 50% draw when one-half of the contracted work is completed and a 40% draw when 90% if the work is completed The city will hold 10% retention for up to thirty (30) calendar days at the end of the contract to cover closeout contingencies The contractor must submit all lien waivers, warranties/guarantees prior to the release of the 10% retention. Warranties and Owners Manuals The contractor shall warrant all work for a period of two (2) years or more, exclusive of the manufacturer's warranty, from the date on the approval of the final inspection, which will be signed by the homeowner and the HRPC. Major systems or items necessary to make the property meet code should be analyzed on the basis of a three year life expectancy Major systems include roofs, heating, cooling, plumbing, water heaters, and electrical components When included in a project, warranties for all items such a new appliances/hot water heaters shall be given to the HRPC by the contractor(s). All warranties will be provided to the homeowner. Final Inspection After the contractor has passed all permit inspections from the Building Department, please inform the HRPC so that a final inspection can be scheduled. Approval of the City of Apache Junction Housing Rehabilitation Program Guidelines page 22 of 30 work by the city building inspector does not constitute acceptance of the workmanship by the Housing Rehabilitation Program or the homeowner The HRPC will schedule for a post audit to be completed. All items identified by the BPI certified technician shall pass the inspection If the improvements are not completed accordingly, the technician will identify the deficiency and the contractor will be required to make the necessary improvements to achieve the identified energy efficiency goals. No change order may be requested to cover the costs of re- doing any work previously recommended. Upon the homeowner's acceptance of the work completed, final payment will be issued after final invoice and lien waiver are presented to the HRPC. Final payment can be expected within 30 days of work completion and successful final inspection In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation, the HRPC will work with both parties to negotiate a satisfactory solution If a solution cannot be arrived at, a grievance can be filed as outlined below. HOUSING MAINTENANCE AND HOMEOWNERSHIP EDUCATION In addition to warranty brochures, the HRPC and Contractor shall conduct training in the home to instruct the homeowners on the new equipment, appliances and general housing maintenance counseling on items that had been installed in the home. The city will provide a home maintenance document. The city's housing program also provides a Housing Programs and Services Newsletter on a quarterly basis for all housing rehabilitation program recipients Homeownership Counseling is currently provided by the Arizona Department of Housing and/or their designee. ENERGY EFFICIENCY GUIDELINES The HRPC will write the bid specifications to include energy efficiency measures as required by the Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards Detailed information pertaining to the Energy Efficiency requirements can be found in the city's Housing Rehabilitation Program Construction Guidelines. The City's requirements incorporate the following standards BPI/BA Standards, IECC 2009, ASHRAE 62.2-2010, Energy Star, and Standardized Work Specification. LEAD BASED PAINT REQUIREMENTS/ PRE-1978 HOUSING On September 15, 1999, HUD published a Final Rule at 24 CFR Part 35 to implement new regulations with regard to lead-based paint in compliance with the Residential Oily of Apache Junction Housing Rehabilitation Program Guidelines, page 23 of 30 Lead-Based Paint Hazard Reduction Act of 1992 This Rule was effective on September 15, 2000. ADOH received permission from HUD to defer implementation of this Rule until January 10, 2002. As of January 10, 2002, any CDBG or HOME awards made by the ADOH after January 10, 2002, and used to fund housing rehabilitation projects are required to comply with these lead-based paint requirements However, CDBG or HOME awards made by the ADOH before January 10, 2002, and used to fund housing rehabilitation projects, whether or not the actual projects have been started, will not be subject to these requirements In order to comply and implement these lead-based paint requirements, the HRP shall use as guidance the ADOH Housing Bulletin #1 issued by the Office of Housing Development ("OHD") on December, 2001. The HRP shall specifically adhere to the evaluation, disclosure, work requirements, and clearance procedures contained in this Bulletin Any interim control or abatement procedures of lead-based paint hazards as prescribed by HUD requirements shall be included in the scope of work The HRP shall also attempt to obtain lead-based paint general liability insurance for lead-based paint hazards and encourage contractors to secure lead-based paint hazard liability insurance The HRPC will provide the homeowner with the EPA/HUD Pamphlet "Protect Your Family from Lead in Your Home" The HRPC shall also provide the homeowner with the Lead Based Paint Notification for the homeowner's review and signature The HRPC shall specifically review the notification form with the homeowner and make every effort to ensure the homeowner is aware of the hazards and ways to avoid lead based paint poisoning. The executed notification is retained in the homeowner/client's file and a copy is provided to the client If lead based paint hazards are identified and treated by a certified lead based paint risk Assessment Company, the HRPC shall meet with the recipient and discuss the findings contained in a Risk Assessment Report The recipient shall also sign off on the report to reflect that the findings contained in the Risk Assessment Report were explained and discuss with the recipient The Risk Assessment Report shall then become a part of the recipient's file All brochures regarding lead-based paint hazards are available in alternate format for non-English Spanish speaking persons upon request CONFLICTS OF INTEREST 1) Any person who is an employee, agent, consultant, officer, or elected or appointed official of the City may not obtain a personal or financial interest or benefit from this activity, nor may they have an interest whatsoever, however remote, in a contract, subcontract or proceeds either for themselves, their family or business ties during their tenure, or for one year thereafter 2) No contract will be awarded to a contractor who is related, or whose employee is related to the applicant by blood or marriage City of Apache Junction Housing Rehabilitation Program Guidelines. page 24 of 30 Upon written request to the HRP in care of the Apache Junction Development Services Department, the Development Services Director, or his/her designee, will determine if a conflict exists. COMPLAINT AND GRIEVANCE PROCEDURE Applicants, Program participants, or contractors may initiate a complaint by submitting concerns in writing to the City of Apache Junction Development Services Director, or his/her designee, at 300 East Superstition Boulevard, Apache Junction, Arizona 85119 The Development Services Director, or his/her designee, is responsible for receiving, reviewing, and responding to all complaints including prequalification of applicant or contractor qualification. The City must issue a written response to any complaint within ten (10) working days of receipt If unsatisfactory to the complainant, a written appeal of the City's response shall be filed within ten (10) working days of receipt of the City's response. Appeals shall be made to the City Manager, by sending such appeal to 300 East Superstition Boulevard, Apache Junction, Arizona, 85119 Attn City Manager. The City Manager shall be the final administrative decision maker Further judicial appeals shall be in accordance with A.R.S. Title 12, 12-901 Assistance from the City in preparing a grievance is available at no charge if needed due to either a disability or language limitation. Assistance will be provided through the Development Services Department at(480) 474-5090 TDD (480) 983-0095, FAX (480)474-5102 or 300 East Superstition Boulevard, Apache Junction, Arizona 85119. Additionally,the City of Apache Junction has adopted an internal complaint procedure providing for prompt and equitable resolution of complaints alleging any action prohibited by the federal regulations implementing Title II of the Americans with Disabilities Act ("ADA") and Title VI of the Civil Rights Act of 1964, as amended. Title II states, in part that"no otherwise qualified disabled individual shall, solely by reason of disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination" in programs or activities sponsored by the city. All ADA and Civil Rights complaints made against the city, its employees, representatives, and contractors relating to facilities, programs, services and projects, shall be required to adhere to this process in order to file a grievance. All equal employment opportunity complaints shall be filed with the Human Resources Department and may not be handled in the same manner as ADA and Civil Rights complaints under Titles II and VI City of Apache Junction Housing Rehabilitation Program Guidelines, page 25 of 30 Civil rights complaints are valid when the legal basis for the complaint is due to discrimination on the basis of race, color, national origin, religion, sex, disability, or familial status. Depending on the complaint, the following persons shall be responsible for determining a resolution: Complaints filed against the city whether a city program, service or project, will be reviewed by the ADA and Civil Rights Coordinator ("ACRC") and forwarded to any applicable state and/or federal agency as required under their guidelines Additionally, the Arizona Department of Transportation ("ADOT") Civil Rights Office will be provided all civil rights complaints regardless of the nature of the complaint relevant to a project funded in whole or in part by ADOT funding ADOT will then follow their procedures to determine if the complaint is relevant to their area of jurisdiction Subsequently, the ACRC and/or ADOT will make a determination and resolve the complaint within 60 calendar days. Complaints filed against a contractor hired by the city shall be reviewed by the ACRC and a copy shall be provided to ADOT within 60 days. The complaint will be reviewed, investigated and resolved within 60 calendar days. Complaints should be addressed to Bryant Powell, ADA and Civil Rights Coordinator, 300 East Superstition Blvd , Apache Junction, Arizona, 85119, (480) 474-5066 1. A complaint shall be filed in writing or digitally. It must contain the name and address of the complainant, and describe the nature and the date of the alleged violation of the regulations. The complaint must be signed by the complainant or by someone authorized to do so on his or her behalf A complaint form is available on-line at www aicity net/ada or by asking any city staff member 2 A complaint must be made within 30 calendar days after the complainant becomes aware of the alleged violation 3. The ACRC will call or meet with the complainant no later than 8 city working days after receipt of the complaint An investigation, if needed or if appropriate, may follow the meeting The investigation shall be conducted by the ACRC. Any investigation should be informal but thorough, affording all interested persons an opportunity to submit information relevant to the complaint. City of Apache Junction Hous,ng Rehabilitation Program Guidelines, page 26 of 30 4 The ACRC shall issue, as soon as possible, but not later than 30 calendar days after the complaint is received, a letter or email acknowledging the complaint, which includes a description of the resolution to the complaint The decision of the ACRC shall be binding and final subject only to an appeal pursuant to A R S. 12-901, et seq. 5 The ACRC shall retain all complaint records and associated documents pursuant to the city's record retention requirements, and shall dispose of �. them in accordance with such policy 6 The right of a person to file a complaint under this procedure shall not affect the complainant's right to pursue other remedies such as filing of a complaint with the responsible federal or state agency Use of this grievance procedure shall not extend the time for filing any complaint with the responsible federal or state department or agency. MARKETING The Housing Rehabilitation Program will be marketed using the following media Brochures, Flyers, City of Apache Junction Website, the Housing Programs and Services Newsletter, The Citizen (Parks & Recreation Publication), City of Apache Junction's Cable Channel, the city's grants blog www apachejunctiongrants wordpress corn, and local newspapers including AJ News and the Independent Direct marketing to neighborhoods may also be conducted by mailing a postcard to residents within a targeted area notifying them of the city's programs. Distribution of marketing materials will be through a local network of human/social services agencies and at general posting locations throughout the city which include but are not limited to the outlets below Human/Social Service Agencies TRIAD Neighborhood Watch Groups Pinal County Housing Pinal County Volunteer Center CAAFA CAAG RSVP Program ABIL CAHRA Salvation Army Area HOA's Apache Junction Food Bank Boy's and Girl's Club Project Help HOPE Women's Center Apache Junction Senior Center Apache Junction School District Apache Junction Community Development Corporation Apache Junction Chamber of Commerce Central Arizona Council on Development Disabilities City of Apache Junction Victim Assistance (Police Department) City of Apache Junction Victim Advocate (City Attorney's Office) City cf Apache Junction Housing Rehabilitation Program Guidelines, page 27 of 30 Superstition Mountain Mental Health Center Posting Locations City Hall Library Parks and Recreation Multigenerational Center The City will make every effort to accommodate persons with disabilities and non- English speaking persons. See the section entitled Assistance to Applicants for additional information. STAFFING AND ADMINISTRATIVE REVIEW All administrative and supervisory work will be done by city staff Procedures to protect applicants, HRP participants, and contractors are outlined in the sections entitled Complaint and Grievance Procedure and Non-Discrimination. The City of Apache Junction's HRPC will be responsible for the following: application intake; income verification; case management; contractor procurement, change order approvals; and final inspection. The HRPC can be reached at 300 East Superstition, Apache Junction, Arizona 85119 The HRPC can also be contacted at (480) 474-5090 or TDD (480) 983-0095. Development Revenue Program Svcs. Directo Dev. Manage Coordinator City Manager Assistant City Manager Finance Director NON DISCRIMINATION The City of Apache Junction, or any of its sub recipients, do not discriminate in any activity on the basis of race, color, religion, sex, disability, familial status, or national origin. The City of Apache Junction is an Equal Opportunity Employer, Minority Contractors participation is encouraged DBE/MBE/WBE A copy of the City's Equal Employment Opportunity Policy is available on-line at http.//www.aicity.net/index.aspx9nid=556 ASSISTANCE TO APPLICANTS Should an individual need assistance in preparation of an application, assistance will be provided, at no charge, through the Development Services Department The City of Apache Junctior,Housing Rehabilitation Program Guidelines, 28 of 30 Department can be reached at 300 East Superstition, Apache Junction, Arizona 85119. Assistance can also be requested at (480) 474-5090 or TDD (480) 983- 0095. Applicants may request assistance because of a: 1) physical/mental! emotional disability or 2) limited ability to speak/read English FAIR LABOR STANDARDS The provisions of the FLSA are not applicable to the rehabilitation of single family homes under this program APPLICABLE DOCUMENTS The city's HRP uses guidance from the following sources of information pertaining to the administration of the HRP 1) Arizona Department of Housing Owner Occupied Housing Rehabilitation Standards 2) United States Department of Housing and Urban Development Housing Quality Standards 3) United States Environmental Protection Agency Information regarding Lead Based Paint 4) Arizona Department of Housing, State Housing Fund Program Summary and Application Guidelines 5) Arizona Department of Housing Community Development Block Grant Handbooks 6) Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards 7) City of Apache Junction City Ordinances and adopted Building Codes 8) City of Apache Junction Housing Rehabilitation Program Construction Guidelines CHANGES TO HOUSING REHABILITATION PROGRAM GUIDELINES The Housing Rehabilitation Program Guidelines are generally adopted with revisions annually, however should an emergency change within the Housing Rehabilitation Guidelines as adopted by the city council be required throughout the program year, the Mayor shall submit a letter in writing to the Arizona Department of Housing ten (10) days prior to the change coming into effect. FORMS A complete packet of forms utilized by the City's Housing Rehabilitation Program are available upon request. Below is the listing of those forms Form Form Application which includes Authorization for Work Write Up including cost estimates Release of Info,Verification of Employment, Owner Acceptance of Work Write Up Affidavit of Non-Income,Declaration of Contractor Participation Statement Citizenship Contract between Contractor and Owner City of Apache Junction Housino Rehabilitation Program Guidelines, page 29 of 30 Income Verification Determination Sheet Owner's Color Preference Verification Agreement which includes Certification of Change Orders Principal Residence,Federal Assistance Final Acceptance of Work Completed Notice,Complaint and Grievance Procedure, Final Invoice and Waiver of Lien Disclaimer Truth In Lending Form,Right of Rescission,Promissory Note, Development Services Due Diligence Deed of Trust,Release of Lien AMMIlk City of Apache Junction Housing Rehabilitation Program Guidelines, page 30 of 30 O� P?ACHE 11111111k✓Gym 1,7z 4Rizot4P CITY OF APACHE JUNCTION, ARIZONA HOUSING REHABILITATION PROGRAM GUIDELINES As Adopted by the City Council on February 1, 1994 Modified by the City Council on January 17, 1995 Addendum by the City Council on March 21, 1995 Modified by the City Council on June 20, 1995 Modified by the City Council on March 7, 2000 Modified by the City Council on May 15, 2001 Modified by the City Council on February 5, 2002 Modified by the City Council on January 16, 2007 Modified by the City Council on June 5, 2007 Modified by the City Council on November 18, 2008 Modified by the City Council on December 15, 2009 Modified by the City Council on December 6, 2011 Modified by the City Council on January 15, 2013 Modified by the City Council on April 1, 2014 Modified by City Council on January 20, 2015 The city council of the City of Apache Junction adopts the following Housing Rehabilitation Guidelines to assist the city in administering the city's Housing Rehabilitation Program This program is intended to provide safe and decent housing to City of Apache Junction residents by offering funding options to assist homeowners with the rehabilitation or modification of their home. PROGRAM PURPOSE (GOALS) 1. Eliminate health and safety hazards in homes; 2 Benefit very low-, low- and moderate-income residents, and 3. Improve neighborhoods and encourage stability. City of Apache Junction Housing Rehabilitation Program Guidelines page 1 of 29 TABLE OF CONTENTS Program Purpose and Goals 1 Program Design 3 Target Area 3 Eligibility Requirements 3 Property Standards 6 Allowable Work Items 6 Non-allowable Work Items 8 Rehabilitation Assistance Plans 8 Emergency Housing Repair 8 Housing Accessibility 8 Housing Rehabilitation 9 Replacement 9 Permit Fee Fund 9 Deferred Payment/Forgivable Loans 11 Exceptions to the Maximum Allowed 11 Recapture Period 11 Loan Servicing Policy/Subordination 12 Revolving Loan Fund/Program Income 12 Third Party Income Verification 12 Method for Determining After Rehab Value 13 Homeowner Information 14 Contractor Information 17 Housing Maintenance and Homeowner Education 23 Energy Efficiency Guidelines 23 Lead Based Paint Requirements 23 Conflict of Interest 24 Complaint and Grievance Procedures 25 Marketing 27 Staffing and Administrative Review 28 Non-Discrimination 28 Assistance to Applicants 28 Fair Labor Standards 29 Applicable Documents 29 Changes to Program Guidelines 29 Forms 29 City of Apache Junction Housing Rehabilitation Program Guidelines. page 2 of 29 PROGRAM DESIGN The focus of the Housing Rehabilitation Program (hereinafter "HRP") is to increase the life and improve the livability of homes owned by very low-, low- and moderate- income families by correcting code violations, solving health and safety issues, addressing accumulated deferred home maintenance projects, and providing sustainability by weatherizing homes Funds for the program are primarily provided through the 1) Community Development Block Grant Program ("CDBG") and 2) State Housing Fund ("SHF") including HOME and State Housing Trust Funds as administered by the Arizona Department of Housing ("ADOH"). Owner-occupied housing rehabilitation ("OOHR") assistance to homeowners in the SHF funded portion of the city's HRP may be in the form of deferred payment/forgivable loans. OOHR assistance to homeowners in the CDBG funded portion of the city's HRP may be in the form of grants or deferred payment/forgivable loans Unless specifically stated to the contrary, comments contained in these guidelines are applicable to both the CDBG and SHF funded portions of the city's HRP TARGET AREA The program will be open to all full-time permanent residents who live within the incorporated boundaries of the City of Apache Junction, excluding those who live in designated ineligible areas or structures as outlined in the eligibility requirements below. CDBG funds may only be used in the Pinal County portion of the city. ELIGIBILITY REQUIREMENTS To be eligible, the applicant and the property to be rehabilitated must meet the following criteria: • Located within the incorporated boundaries of the City of Apache Junction, excluding the Maricopa County area. • Feasible for rehabilitation under the time and monetary constraints of the program. • Owned and occupied by a full-time permanent resident of Apache Junction. • Applicants must have a verifiable income that falls below 80% of the area median income as indicated by The US Department of Housing and Urban Development and the State of Arizona—State Housing Fund Program income City of Apache Jur,cnor Housing Rehabilitation Program Guidelines. page 3 of 29 limits for very low-, low- and moderate-income families. Income guidelines are updated annually Income verification is valid for a period of six (6) months. Upon expiration of income verification information, applicants must complete and submit new income verification documentation Income must be anticipated and verifiable for the next 12 months Required documentation of income can be found under Third Party Income Verification within this document • For all programs, specifically the SHF Program, the property owner cannot have-assets-that--tot'vcal more than��25 nnn (e g ca h stocks bonds money market accounts, IRA, etc.) This is exclusive of the home they live in, two • Provide proof of homeowner's insurance • For the purposes of eligibility, self help or "sweat" equity are not allowable forms of equity. • The current owner must have occupied the structure for at least one (1) year prior to program entry • Preference will be given to households applying for funding that meet one of the following criteria: 1) be elderly(62 years of age or older); 2) have a disability (a legally recognized physical/mental/emotional condition that limits the performance of daily living skills), or 3)have minor child (ren) age 17 and under related to head of household residing in the residence. • A R S 1-501 and 1-502 requires that all homeowners who receive services under the program shall provide proof of lawful presence in the United States including a sworn affidavit that the required documentation is true under penalty of perjury • Owner is to complete any recent construction project underway prior to the city's approval of rehabilitation assistance. • Manufactured and mobile homes are deemed eligible contingent upon 1) applicant (s) having owned and occupied both property and dwelling for one (1) year prior to program entry; and 2) the home being permanently attached to a foundation, either as a pre-existing condition or as a work element of the HRP. • Properties in non-conforming zoning, properties located within 1,000 feet of an explosive/flammable operation, properties with open, unresolved building or code compliance cases and homeowners unwilling to follow the City of Apache Junction Program Guidelines, are not generally eligible for rehabilitation under this program. City of Apache Junction Housing Rehabilitation Program Guidelines e 4 of 29 • Homes of historical value may only be eligible upon favorable review by the State Historic Preservation Office • Manufactured homes that were built before June 1976 are not eligible to receive housing rehabilitation funding, however they are eligible for emergency and housing accessibility assistance • The rehabilitation of dwellings located in the 100-year floodplain are not eligible for participation in the rehabilitation program • Properties that are classified "non-conforming" are not generally eligible for rehabilitation. However, if the proposed rehabilitation is non-structural and there are no properties waiting to be rehabilitated, nonconforming properties that meet all other eligibility criteria may be considered. • Properties with an open building or code case are generally not eligible for rehabilitation However if the case is relating to a correctable building condition HRP funds can correct under the requirements of the program, then the unit will be deemed eligible • Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage, however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position. Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property. Mortgage payments and insurance premiums must all be current Is there Is the home someone who is located within over the age of the city limits of 62,under the '? ' Apache age of l8,ar rlt1Z0n _•. /unction? disabled living in the home? Are youbw Click here to view Are you a '.. income and full time De you have willing to the income limits for permanen homeowners provide Insurance? documentatio program eligibility t resident?.; not income?. If you have. answered yes to Have you 1s the nog all of the Do you owned and own your lived in our located questions. home and100 y outer, of a CONGRATULATI and? home for floodplain ONS,YOU MAY one year? QUALi1yl City of Apache Junction Housing Rehabilitation Program Guidelines page 5 of 29 PROPERTY STANDARDS The property standards that must be achieved as a result of assisted rehabilitation are established by the most recent state and local building codes, the Federal Housing Quality Standards, Arizona Department of Housing's Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weathenzation Standards, the City of Apache Junction Housing Rehabilitation Program Construction Guidelines, the Uniform Federal Accessibility Standards and the Americans with Disabilities Act, as applicable and needed by the homeowner. The city's Energy Efficiency requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE 62 2-2010, Energy Star, and Standardized Work Specification ALLOWABLE WORK ITEMS HOME guidelines require an entire dwelling be brought up to local code A preliminary property inspection is completed to assist with ensuring homes meet Housing Quality Standards ("HQS") and are safe, sanitary and decent. Priorities have been established for determining the work that will be completed in the eligible homes 1 Code Violations 2 Issues of Health and Safety 3 Weathenzation Standards/ Energy Efficiency 4 Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work): 1. The age and the physical condition of the building, 2. The goal of the program (building revitalization or direct benefit); 3. Funds available for rehabilitation of each unit, and 4 Value of unit after rehabilitation The following levels are utilized to determine priorities for the HRP • Level 1 Initial inspection reports must include items in Level 1. • Level 2 Items included on Level 2 are also considered critical but not as critical as those items in Level 1. Other items are considered less critical and should always be inspected but may not be rehabilitated City cf Apache Junction Housing Rehabilitation Program Guidelines. page 6 of 29 • Level 3• The items on List 3 should be reviewed, and where feasible, corrected. These items must also be included whenever substantial rehabilitation is taking place. • Items from all levels must be included in the preliminary inspection report for all construction projects and those where the cost of rehabilitation exceeds 75% of the value of the property Level 1 - Items that must be included in the inspection report and must be repaired or replaced. 1 Lead Based Paint Assessment (only on properties built prior to 1978) 2 Hazardous Materials 3 Health and Safety Hazards 4 Stable and Weather Tight Roof 5 Electrical System — the unit must have a minimum 100-amp electrical service, with no unsafe conditions 6 Plumbing (including hot water) — Must be in good working order and be safe and sanitary 7 Heating and Cooling Systems — must be adequate and safe with a reasonable (three year) useful life 8. Egress in accordance with local health and safety codes 9. Trip Hazard (HQS Standard) Level 2 - Items that must be included in the inspection report and should be repaired or replaced 1 Structural soundness and integrity (including rotted or deteriorating materials and those impacted by termites and/or other wood-boring insects) 2. Siting of the structure and its relationship to water penetration that may impact structural integrity. 3. Appropriate kitchen facilities including a sink and means of cooling and heating food to healthful standards 4. If the structure has an attached garage, appropriately-rated fire wall between garage and living areas 5 Weathenzation items The above mentioned items are first priority items that shall be included in every inspection report These items shall also be included in the Work Write-Ups (funds permitting) and shall receive priority in work to be completed as part of the rehabilitation project. Repair or replacement may take place based on the amount of available resources Level 3 - Items that must be included in the inspection report and may be repaired or replaced City of Apache Junction Housing Rehabilitation Program Guidelines, page 7 of 29 1. Debris that may be a fire hazard 2. All existing exposed surfaces painted or sealed and not presenting a health or safety hazard 3 Cabinetry 4 Finished flooring 5 Repair and replacement of doors and windows not presenting a health or safety hazard The above mentioned items shall be included in every inspection report and may be included in the Work Write-Up (funds permitting) These items generally result from deferred maintenance and are considered general improvements. The City wishes to encourage contractors to buy locally whenever possible. NON ALLOWABLE WORK ITEMS None of the program funds shall be used for temporary/long term relocation of applicants during periods of home rehabilitation/repair. No funds shall be used to reimburse the homeowner for work completed REHABILITATION ASSISTANCE PLANS 1. EMERGENCY/MINOR HOUSING REPAIR PLAN A grant plan that assists homeowners in the elimination of an imminent threat to life, safety or health, the necessary repairs may include, but shall not be limited to: roofs, floor repairs, window/door replacements, and wall and ceiling repairs. The minimum assistance is$1,000 and the maximum assistance is$15,000 per recipient The grant may address no more than two (2) emergency conditions, unless approved by the Development Services Director, or his/her designee, due to some extenuating circumstances. A structure may be eligible for an Emergency Grant even though it may not meet structural integrity requirements After a recipient has received services through the Emergency Housing Repair program they may not be eligible to receive additional services until five years after the completion of the project unless the emergency services enable the homeowner to remain in their home until the home can be rehabilitated under the city's Housing Rehabilitation Plan or replaced under the city's Replacement Plan Additionally, no single owner of a home may receive more than two emergency assistance grants. 2. HOUSING ACCESSIBLITY PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to make their residence physically accessible. Assistance can be either structural changes or purchase of durable medical equipment (if it becomes a permanent part of structure) and may include ramps, grab bars, handrails, raised toilets, lowered light switches, automatic door openers, visual alarms, transfer shower benches, and hand held City ci Apache Junction Housing Rehabilitation Program Guidelines, page 8 of 29 showers Grants are limited to $2,500 per recipient This program is offered through the city's partnership with Community Action Human Resources Agency (CAHRA)or may be a component of another rehabilitation plan 3. HOUSING REHABILITATION PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to address safe, sanitary, and decent housing rehabilitation issues Rehabilitation projects may either be major or minor Grants and deferred payment/forgivable loans are limited to a minimum of$1,000 and a maximum as required by the grant from which the funds will be expended, this amount may change each funding year. Mobile/manufactured homes and conventional, site-built homes have different maximum investments HOME funds cannot be utilized in the form of a grant. In the HOME Program, weatherization, emergency repairs, or accessibility projects may be undertaken only if the property is brought up to the State's rehabilitation standards upon completion. When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested. However, should the recipient receive any housing rehabilitation services in the form of a grant, they may not be eligible to receive additional services until five years after the completion of the project 4 REPLACEMENT PLAN A grant or deferred payment/forgivable loan plan that assists homeowners with the replacement of unsafe, hazardous living conditions by providing a new manufactured or site-built home This plan provides a maximum investment as stipulated within each grant from which the funds will be expended This amount may change each funding year and is intended for the construction of a new home or for the replacement of a manufactured home. Manufactured homes may not be replaced with site built homes HOME funds cannot be utilized in the form of a .r. grant. When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired No additional HOME funds may be invested. The city will make every effort to eliminate or reduce the need for relocation during construction. Homeowners may be encouraged to find temporary housing with family or friends. In the event that no options exist, the city may use grant funds to pay for temporary accommodations. 5. PERMIT FEE FUND In 2003, the City of Apache Junction created a revenue fund (004-04420-422-225) in order to track and collect permit fees that have been paid for by contractors that are participating in the City's Housing Rehabilitation Program. The fees that were collected were to be used to supplement and support the activities of the City's Housing Rehabilitation Program These fees are collected in accordance with the City of Apache Junction Housing Rehabilitation Program Guidelines, page 9 of 29 ... City of Apache Junction City Code, Volume I, Chapter 7, Article 4-4 Sections A through I All relevant fees shall be due payable by the contractor prior to the start of construction on any City of Apache Junction housing rehabilitation project These fees will be tracked by the Housing Rehabilitation Program Coordinator ("HRPC") and reported to the Finance Director for deposit into the appropriate revenue •_ account. This account will be tracked to ensure accurate balance and expenditures Eligible expenses to be withdrawn from this account shall be minor repair items that are eligible under the City of Apache Junction's Housing Rehabilitation Program and the adopted Housing Rehabilitation Guidelines. Recipients of these funds, however, must be homeowners that are not eligible under the same guidelines or available funding programs. These repairs must be determined an emergency by the Program Coordinator. Further, the Coordinator must have found that there is no other funding or community assistance can be located for the homeowner. Eligible homeowners must be either elderly (over the age of 62), disabled, or have children under the age of 18 occupying the home and the total household income must not exceed 80% of the area median income. When an expense is determined to be eligible to be charged to this account, the Coordinator will submit a check request along with an invoice for payment to the finance department The maximum amount payable toward any project shall be $1,000 unless otherwise approved by the Development Services Director. Emergency Housing Replacement Rehabilitation Rehabilitation A Replacement may be provided to Eligible Homes Eligible Homes homeowners when the cost to 1)Single family homes,manufactured 1)Single family; rehabiltate their home exceeds the homes condos,and townhomes; maximum investment allowable 2)Post-1976 manufactured homes 2)Pre-1976 manufactured homes; affixed to a foundation; 3)Manufactured homes affixed to a 3)Condos and town homes; Replacement homes will be site built foundation; homes,where zoning allows for such 4)Homes without embumbrances e.g. construction 4)Homes with encumbrances e.g reverse mortgage and liens,excluding a reverse mortgage and liens excluding a first mortgage. first mortgage Manufactured homes may be used as a - replacement in areas where zoning Eligible items does not allow for site built homes Eligible Items 1)Complete rehabilitation of home; 1)Acessibility improvements, 2)Address all code,health and safety A lien is placed on the home for the 2)Health and safety improvements, items; extent of the recapture period which is 3)Limited to two improvements per 3)Incorporate energy efficiency based upon the total investment grant improvements; amount 4)Accessibility items. Assistance Provided Grant not to exceed$15,000 Assistance Provided Limit assistance to two times per home Deferred Payment Forgivable Loan Single family home maximum investment$60,000 Manufactured home maximum investment$20,000 No additional assistance during recapture period A lien is placed on the home for the • extent of the recapture period which is based upon the total investment amount. City of Apache Junction Housing Rehabilitation Program Guidelines, page 10 of 29 DEFERRED PAYMENT/FORGIVABLE LOANS All deferred payment forgivable loans are secured by a lien and promissory note. A percentage of the total assistance provided on forgivable loans will be forgiven on the anniversary date of the execution of the recording of the loan instruments throughout the recapture period, provided that the dwelling unit continues to be occupied by the original occupant or an income qualified immediate family member The unforgiven balance of the loan shall become due and payable upon the sale of _ the property Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property HOME funds cannot be used in the form of a grant. The HRPC will be responsible for recording the required paperwork as determined by the loan The lien will be recorded at the Pinal County Assessor's Office and will include applicable administrative costs and a contingency of 10% above the Contractor's Bid The Deed of Trust will be placed on a tracking system by the HRPC who will track the loan calculating the amount of dollars that will be forgiven as each year passes until the loan has been completely forgiven as outlined in the HRGs The HRPC will send a letter to the homeowner annually advising the homeowner of the status of their loan, identifying the amount forgiven and the amount that remains on the loan The city will be no lower than the first position on the lien of the home or second if a financial institution held first position prior to the city recording the loan documents A letter to the homeowner shall provide a reminder that the city cannot subordinate the loan EXCEPTIONS TO THE MAXIMUM ALLOWED The Maximum investment for each project is stipulated under each grant program from which the funding is expended This maximum may change with each funding year. However under no circumstance may the maximum per unit investment exceed that which is determined by the geographic area 221 (d) 3 per unit limits based on the number of bedrooms nor can the after rehabilitation value exceed the allowable amount set by HUD (see Method for Determining After Rehabilitation Value section below) RECAPTURE PERIOD •Investment of$1,000-` 5 Years $15,000 • When a recipient elects to receive assistance in the form of a deferred or forgivable loan, a •Investment of$15,001 recapture period applies The recaptured 10Years -$40,000 period is based on the amount of funds invested in the assisted unit. Recipients may elect to have •Investment of$40,001 a recapture period that is longer than the required 15 Years -$75,000 period. When a recipient receives a deferred •Investment of$75,001 30 Years and over City of Apache Junction Housing Rehabilitation Program Guidelines, page 11 of 29 payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired No additional HOME funds may be invested. LOAN SERVICING POLICY/SUBORDINATION After execution of the loan, subordination agreements with lending institutions will not be honored since such practice is lending of city credit in violation of State constitutional law Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage; however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position Should a refinancing request be made by the homeowner after the rehabilitation work has been completed and a lien has been placed on the structure and the request has been made prior to the end of the recapture period, the lien shall become due and payable upon refinancing to the city Thus, should the refinance be cash out, the city will require payment in full of the lien The city will be no lower than first position on the lien of the home As noted above, the city cannot subordinate the loan in any manner. REVOLVING LOAN FUND/PROGRAM INCOME The City of Apache Junction does not currently have a revolving loan fund. Therefore the City will track all loans. In the event a house that has received services is sold prior to the end of the recapture period, the city will enforce the repayment of the loan in the amount that remains unforgiven These funds will then be immediately circulated into the Housing Rehabilitation Program and will be utilized prior to the use of any new grant funds However when utilizing HOME funds, any recaptured or �.� repaid funds will be returned to the Arizona Department of Housing as retention of HOME funds is not allowed by the Arizona Department of Housing. THIRD PARTY INCOME VERIFICATION Upon receipt of the application, the HRPC will verify eligibility based upon the homeowners income The definition of income is taken from 24 CFR Part 5 Gross Income will be used to calculate income for all members of the household over the age of 18. Income must be anticipated and verifiable for the next 12 months. Typical required documents to verify income will include, but are not limited to 1 Bank Statements including checking and savings accounts, 2 Paycheck stubs including tips, commission and bonuses, and overtime; 3. Earned Interest and Assets: This amount is calculated into the income if over $5,000. Eligible assets include but are not limited to Value of Stock, Life City ci Apache Jui,cilon Housing Rehabilitation Program Guidelines, page 12 of 29 Insurance, 401K, interest, CD's, Real Estate, Personal property not including home; 4. Social Security, 5. Welfare Assistance; 6 Alimony and Child Support, 7 Minors Income specifically disability payments, 8 If self employed, must include the past three (3) years income tax returns for net income; 9 Excluded items include earned income from minors (under age 18), full-time student income (ages 18-23), disabled persons' income, and food stamps Median Income Guidelines HUD updates the Median Income Guidelines on an annual basis. The most current information can be found on the US Department of Housing and Urban Development website. The city will utilize the HUD Income Calculator to determine income eligibility. https://www.onecpd infohncomecalculator/ METHOD FOR DETERMINING AFTER REHABILITATION VALUE Beginning August 23, 2013 HUD has established the HOME Maximum After- Rehab Value Limits for owner occupied housing rehabilitation. These limits will remain in effect and are updated as HUD issues new limits. The new HOME value limit for existing housing to be used for owner occupied housing rehabilitation is 95 percent of the median purchase price for the area based on Federal FHA single family mortgage program data and other nation-wide data on the sales of existing housing To establish Project eligibility, after-rehabilitation value must be established prior to any work being performed The after- rehabilitation value may be established by one or more of the following methods: 1. Estimates of value: Estimates of value by the subrecipient may be used Project files must contain the estimate of value and document the basis by which the value estimates were derived. (For example, a Real Estate Broker's price opinion with supporting comparable sales ) Websites such as quizzle corn, zillow.com and trulia corn may be used to determine an estimated value 2 Appraisals: Appraisals, whether prepared by a licensed fee appraiser or by a staff appraiser of the city, may be used Project files must document the appraised value and the appraisal approach used 3. Tax assessments Tax assessments for a comparable property located in the same neighborhood may be used to establish the after-rehabilitation value if Cityof Apache Junction H'ous.ng RehaLvlilGiron Program Gurdelmes, pace 13 of 29 the assessment is current and accurately reflects market value after rehabilitation HOMEOWNER INFORMATION Applications are available by mail, in the Development Services office, or obtained from the city's website at www ajcitv net/rehab by the applicant Eligible applicants •-• will be prioritized on a first come, first served basis, unless the nature of the project constitutes an eminent threat to health or safety, as determined by the Building Inspector STEP 1: Waiting List Once an application is approved and the homeowner is determined to be eligible to participate in the city's HRP, they will be placed on a waiting list Homeowner's will be served based on two factors 1 A First Come - First Serve Basis 2 Based upon the funding availability of the program with which they are eligible The city has several housing programs Based on their eligibility they may not qualify for all programs. Applicants can remain on the waiting list for up to 18 months or more before receiving assistance The financial information provided with the application is valid for 6 months Therefore homeowner's may be required to re-submit financial information to re-certify they are eligible to participate in the program. A typical timeline for services may be: Application is submitted Review of application (eligibility determination) 2 months Placed on waiting list up to 1 year Schedule initial meeting to discuss the program 2 months Schedule home inspection 2 months Determine work write up 2 months Procure contractor 4 months Signed documents/contracts 2 months Construction 3 months Final inspection 1 month STEP 2 Interview When the time has come to receive the benefits of the program an appointment will be scheduled to make a home visit to discuss the details of the program and sign an agreement All homeowners must be present. City cf Apache Junction Housing Rehab/Nation Program Guidelines, pace 14 of 29 There are two basic programs in which homeowner's may be eligible. It will be determined which program would best suit their needs once an inspection of the home is completed and a cost estimate is determined. Following are the two programs 1 Emergency Rehabilitation This program will address two emergency needs within the home. This program is provided in the form of a grant. Once a homeowner receives this service, they may not be eligible for additional assistance for five years 2 Housing Rehabilitation This program will address all the necessary needs within the home under the requirements of the program Health and safety issues, code compliance and weatherization will be addressed This program is provided in the form of a deferred payment loan which will place a lien on the property. A deferred payment loan means that over a given period of time, the loan will be forgiven so long as the homeowner remains in the home as their only and primary residence Once they receive this service, they may not be eligible for additional assistance until the loan has been forgiven This recapture period is dependent upon the amount of funds invested into the home STEP 3 Home Inspection The city will complete an inspection on the home. This inspection will help to determine what items will need to be completed on the home Below is information to help determine what items are eligible under the requirements of the program We would like to: Eliminate unsafe and hazardous conditions; Improve living conditions and extend the life of the home, Make the home accessible for family members with special needs, Bring the home to minimum safe property standards and local codes, Improve property values in the neighborhood; and Improve energy efficiency. Areas we can provide help include: The program will NOT: Electrical Accessibility Change of colors or styles Plumbing Insulation Cover routine maintenance Heating/Cooling Foundation Make the home look like new Roofing Bath facilities Walls Kitchen facilities Painting Hot water Windows/Doors Smoke alarms If the home was built before 1978, a Lead Paint Inspection will be conducted by a qualified contractor, as identified by the city City c!Apache iunct;on Hous;ng Rehab,/ital;on Program Guidelines page 15 of 29 An Energy Audit will be conducted by a BPI certified contractor, as identified by the city. Information provided by from the audit will assist the HRPC will creating a project scope STEP 4: Work Write-up and Bid Process After the inspections are complete a work write-up and cost estimate are determined to assist with the procurement of a contractor The homeowner must approve the project scope pnor to procuring a contractor Priorities have been established for determining the work that will be completed in the eligible homes 1 Code Violations 2 Issues of Health and Safety 3. Weatherization Standards/ Energy Efficiency 4. Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work). 1 The age and the physical condition of the building; 2 The goal of the program (building revitalization or direct benefit); 3 Funds available for rehabilitation of each unit, and 4 Value of unit after rehabilitation It is required that all projects competitively procure a licensed contractor to complete the work on the home The city will assist the homeowner in this process. The following is the process that will take place when procuring a contractor. A notice will be placed on the city's website and in the newspaper advertising a mandatory "pre-bid" meeting to be held at the home Contractors will arrive on that day along with the HRPC and will walk through the home and the work write up will be discussed Each contractor will be required to submit a bid to the City of Apache Junction's Office of the City Clerk on the date and time specified in the advertisement The contractor is not allowed to discuss any compensation with the homeowner. If the contractor has any questions regarding the project and/or the bidding procedures they must contact the HRPC Once the bids have been received, the city will review the information and determine if the contractors are eligible to participate in the program. There are requirements that each contractor must have in order to be eligible The City of Apache Junction is not the contractor, does not recommend contractors, does not choose the contractor and cannot guarantee the homeowner will be completely satisfied with the work completed. The HRP will however work closely Guy of Apache Junction Housing Rehabilitation Program Guidelines page 16 of 29 with the homeowner to help solve any problems and will help ensure the work completed is functional, meets applicable codes and regulations, and is of quality. The HRP does however suggest the lowest most responsive bidder be the contractor awarded the project Therefore the homeowner will be notified as to which contractor that is However the homeowner will be signing the contract with the contractor and as such may select a qualified and eligible contractor to complete the work on their home It should be noted if the selected contractor is not the lowest bidder, the homeowner will be required to pay the difference of the bid amounts Once a contractor is selected all homeowners and the contractor will be asked to come to City Hall and sign the required contract documents. A notice to proceed will be issued after the documents have been executed No work can begin until this has taken place STEP 5. Construction The contractor will be issued the notice to proceed and given a time frame to complete the construction on the home. The homeowner is not authorized to make changes to the project scope of work. All requests for changes must come through the city's HRPC STEP 6: Final Inspection The city will not release payment to the contractor until a final inspection has been completed on the home and the homeowner and city have signed off on the work completed. All concerns should be discussed during this final walk through with the contractor. Although there is a warranty on their workmanship, it is important to discuss any concerns as soon as possible CONTRACTOR INFORMATION Work Write-up After the application has been received, the information verified and funding is available, the HRPC will make an inspection of the property and prepare a work write-up and cost estimate Prior to creating the work write up, the city will request from a BPI certified contractor to complete an Energy Audit on the home (See Energy Efficiency Guidelines). The results of the audit will be incorporated into the work write up The HRPC and homeowner will thoroughly discuss the work to be done. Once the project scope is approved by the homeowner, the city will competitively procure a qualified contractor that meets all of the procurement requirements of the city and the Arizona Department of Housing Work write-ups will be completed by the HRPC. Specific building materials and building methods will be left up to the discretion of the HRPC but must meet ICC City of Apache Junction Housing Rehabilitation Program Guidelines, page 17 of 29 Standards. The City of Apache Junction Housing Rehabilitation Construction Guidelines will provide guidance on preparing the project scope. The HRPC will provide a rehabilitation cost estimate based on available information from recent projects completed All new construction that requires substantial repair (more than 50%) of a system must meet the city's current building codes upon completion The rehabilitated home should at a minimum meet Section 8 Housing Quality Standards and/or all city building codes, whichever is more restrictive, shall govern The city wishes to encourage contractors to buy locally whenever possible Request for bids An advertisement will be placed in the Arizona Republic a minimum of fourteen (14) days prior to the bid opening and/or an email notification will be sent to contractor's listed on the Housing Rehabilitation Program's Bid List The city will require bids from two or more licensed contractors to complete the work Contractors will be required to meet all City of Apache Junction and Arizona Department of Housing requirements to be eligible to be awarded a contract Requirements include a current City Privilege Tax License; a valid contractor license from the State of Arizona, listed on the Registrar of Contractors website and hold valid insurance. Additionally, any contractor participating in the rehabilitation program must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required. The City of Apache Junction encourages minority contractor participation in all projects to include Disadvantaged Business Enterprises e g Small Business Enterprises, Minority-owned Business Enterprises, and Women-owned Business Enterprises A copy of the City's Equal Employment Opportunity Policy is available on-line at http //www aicity net/index aspx'?nid=556 Project walk-thru A mandatory pre-bid meeting will be scheduled prior to the acceptance of the bids to invite all potential contractors to the project site to review the project scope in order to offer an accurate quote. The pre-bid meeting will also be utilized to answer questions and offer information to the contractors and property owner The contractor may not contact the homeowner prior to this meeting Proposal submissions Proposals must be submitted by the date and time provided in the request for bids. All proposals must be submitted in a minimum 8 1/2"x 11" letter sized envelope with the words "Sealed Bid Residential Rehab" along with the address, and the name of the owner of the project being bid. This must be clearly printed on the face of the envelope In addition, the name of the firm submitting the bid must be listed on the City of Apache,function Housing Rehabilitation Program Guidelines, pace 18 of 29 face of the envelope. Failure to comply with the requirements of this paragraph may result in such a bid being considered invalid and returned unopened to the sender All bidders will be notified via email of the bid awards. Addendums All addendums will be sent to interested bidders a minimum of 3 days prior to the bid opening via email. •-. Any changes in the finalized work write-up or specifications must be agreed upon in writing and signed by both the Homeowner and the HRPC before they become effective. No change orders will be approved or paid if the work was completed prior to signed approval by the HRPC Change orders shall not exceed 10% of the total bid price unless the additional work was requested by the HRPC. No side agreements between the Contractor and Homeowner will be allowed. Codes and Standard Specifications The contractor is responsible for knowledge of the city's building codes. All work must conform to Apache Junction Building Codes and/or meet approved Uniform Building Codes unless otherwise specified in writing The property standards that must be achieved as a result of assisted rehabilitation are established by the city's building codes, the Federal Housing Quality Standards and the Arizona Department of Housing's Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weathenzation Standards, and the City of Apache Junction Housing Rehabilitation Program Construction Guidelines The city's Energy Efficiency requirements incorporate the following standards BPI/BA Standards, IECC 2009, ASHRAE 62.2-2010, Energy Star, and Standardized Work Specification. Privilege Tax License The contractor and all subcontractors must have an Apache Junction City privilege tax license prior to beginning work after being awarded a contract for services Subcontractors must be named on the Contractor Bid Proposal. Bid Award Bid awards are done by the homeowner; however the City of Apache Junction's Housing Rehabilitation Program will recommend the lowest most responsible and responsive bidder. The City of Apache Junction's Housing Rehabilitation Program reserves the right to reject any and/or all bids for reasons included but not limited to the following: City of Apache Junction Housing Rehabilitation Program Guidelines, page 19 of 29 kh. ANEW 1 The contractor is not licensed or his license is suspended or has been barred from federal procurement or no procurement programs 2. The contractor is not able to proceed with the project in a timely manner, has failed to complete past projects in a timely or workmanlike manner or has failed to respond appropriately to requests for warranty service. 3 The bid submitted is more than 15% above or below the estimate and may not be able to complete the project for this amount 4 The Contractor has failed to provide lien waivers as required below or has had mechanic's liens filed by suppliers or subcontractors on past projects 5 Bidding forms are improperly filled out, incomplete or not using the correct bidding forms provided Owner Bid Rejection The owner may reject any or all bids without cause subject to the following provisions. 1 The owner may choose to reject the lowest bid and select a contractor other than the lowest bidder if the owner is willing to provide from his own funds an amount equal to the difference between the low bid and the selected bid. 2 The owner may reject all bids at any time up to three working days after the contract is closed. The contract will be between the homeowner and the contractor However the contractor and homeowner may not discuss the award or non-award of the project until the city has completed the required procurement process The city will serve only as an administrator/financier to the contract The contractor must be a licensed contractor in the State of Arizona, hold a city business license, be in good standing with the Registrar of Contractors, and not appear on the excluded parties listing thus shall have a DUNS and CCR number. Delays in Awarding Contract Generally the contract will be closed and the work will begin within thirty (30) days of the date of bid submission If thirty days has passed and no contract is signed, the Contractor may honor the original bid or withdraw the bid If the Contractor chooses to withdraw the bid, the project will be offered to the next qualified low bid or a new bid process will begin. The HRPC reserves the right to negotiate any bid Subcontractors All subcontractors shall be named within the proposal submittal including their ROC numbers. Upon award, subcontractors are required to submit certifications, hold a current City Privilege Tax License and a valid contractor license from the State of Arizona Additionally, any subcontractor participating in the rehabilitation program City of Apache Jancliorr Housing Rehabilitation Program Guidelines, pace 20 of 29 must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required Notice to Proceed The Notice to Proceed issued by the City of Apache Junction's HRPC will identify the start date All construction must begin within seven (7) days. A pre-construction conference will be held between the homeowner, the contractor and HRPC to discuss work items, furniture moving, and other questions in need of clarification All contractors will be required to secure a building permit from the city and post it at the site Quality of Work Provided General Contractors, sub-contractors and their employees qualified to perform the installations for which they are responsible shall perform all work in a quality workmanlike manner. The job site is considered a federal location and must, at all times, be free from an individual chemical use All moved or effected equipment shall be returned to a completely functional nature. The Contractor will make provisions for the fact that homeowners will, at all times, occupy this dwelling during the course of construction and need basic services at day's end Permits The permit application for the project is prepared and submitted by the Contractor The Building Permit will be issued upon receipt of payment from the Contractor The permit must be picked up before beginning any work on the property. Follow the Building Department's procedures for scheduling inspections The Contractor is responsible for all necessary inspections of the property Clean-up The job site should be thoroughly cleaned during and upon completion of the project All construction debris of every sort should be removed along with other debris that may have been on the property or collected during the work. Compact, grade and rake any area disturbed by construction for proper drainage. Construction debris is to be hauled to the landfill and disposed of in accordance with all local ordinances. Under no condition is debris to be left for city pick-up. Timely Manner Work should proceed in diligent manner after start-up Progress inspections will be made almost daily. While material or subcontractor delays are sometimes City of Apache Junction Housing Renabilitathon Program Guidelines page 21 of 29 unavoidable, extended periods without progress or repeated unnecessary delays in completing a project may constitute grounds for rejecting future bids The contractor is expected to complete the job within the timeframe indicated in the contract. There is a two-year warranty on workmanship and materials. Owner Selections The homeowner is allowed to select the following items: 1 One interior paint color 2 Exterior wall and trim color 3 Counter top color 4 One carpet color 5 One floor tile (grout to be sealed) The contractor must supply the homeowner with a minimum of three (3) color samples Payment No payments shall be made to the contractors without written approval from the HRPC and the homeowner, with the exception of disputed discrepancies which may be resolved and paid with the signature of the HRPC The HRPC will monitor all rehabilitation work during construction If progress payments are called for in the contract, the homeowner and the HRPC will make an inspection of the work outlined in the work write-up scheduled for completion before a progress payment will be made. A contractor may request a 50% draw when one-half of the contracted work is completed and a 40% draw when 90% if the work is completed The city will hold 10% retention for up to thirty (30) calendar days at the end of the contract to cover closeout contingencies. The contractor must submit all lien waivers, warranties/guarantees prior to the release of the 10% retention Warranties and Owners Manuals The contractor shall warrant all work for a period of two (2) years or more, exclusive of the manufacturer's warranty, from the date on the approval of the final inspection, which will be signed by the homeowner and the HRPC Major systems or items necessary to make the property meet code should be analyzed on the basis of a three year life expectancy Major systems include: roofs, heating, cooling, plumbing, water heaters, and electrical components. When included in a project, warranties for all items such a new appliances/hot water heaters shall be given to the HRPC by the contractor(s) All warranties will be provided to the homeowner. Oily cf Apache Junction Housing Rehabilitation Program Guidelines, page 22 of 29 Final Inspection After the contractor has passed all permit inspections from the Building Department, please inform the HRPC so that a final inspection can be scheduled Approval of the work by the city building inspector does not constitute acceptance of the workmanship by the Housing Rehabilitation Program or the homeowner The HRPC will schedule for a post audit to be completed. All items identified by the BPI certified technician shall pass the inspection. If the improvements are not completed accordingly, the technician will identify the deficiency and the contractor will be required to make the necessary improvements to achieve the identified energy efficiency goals. No change order may be requested to cover the costs of re- doing any work previously recommended. Upon the homeowner's acceptance of the work completed, final payment will be issued after final invoice and lien waiver are presented to the HRPC Final payment can be expected within 30 days of work completion and successful final inspection In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation, the HRPC will work with both parties to negotiate a satisfactory solution. If a solution cannot be arrived at, a grievance can be filed as outlined below HOUSING MAINTENANCE AND HOMEOWNERSHIP EDUCATION In addition to warranty brochures, the HRPC and Contractor shall conduct training in the home to instruct the homeowners on the new equipment, appliances and general housing maintenance counseling on items that had been installed in the home. The city will provide a home maintenance document The city's housing program also provides a Housing Programs and Services Newsletter on a quarterly basis for all housing rehabilitation program recipients Homeownership Counseling is currently provided by the Arizona Department of Housing and/or their designee ENERGY EFFICIENCY GUIDELINES The HRPC will write the bid specifications to include energy efficiency measures as required by the Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards Detailed information pertaining to the Energy Efficiency requirements can be found in the city's Housing Rehabilitation Program Construction Guidelines. The City's requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE 62 2-2010, Energy Star, and Standardized Work Specification Ci(v of Apache Junction Housing Rehabilitation Program Guidelines, page 23 of 29 LEAD BASED PAINT REQUIREMENTS/ PRE-1978 HOUSING On September 15, 1999, HUD published a Final Rule at 24 CFR Part 35 to implement new regulations with regard to lead-based paint in compliance with the Residential Lead-Based Paint Hazard Reduction Act of 1992. This Rule was effective on September 15, 2000. ADOH received permission from HUD to defer implementation of this Rule until January 10, 2002. As of January 10, 2002, any CDBG or HOME awards made by the ADOH after January 10, 2002, and used to fund housing rehabilitation projects are required to comply with these lead-based paint requirements However, CDBG or HOME awards made by the ADOH before January 10, 2002, and used to fund housing rehabilitation projects, whether or not the actual projects have been started, will not be subject to these requirements. In order to comply and implement these lead-based paint requirements, the HRP shall use as guidance the ADOH Housing Bulletin #1 issued by the Office of Housing Development ("OHD") on December, 2001. The HRP shall specifically adhere to the evaluation, disclosure, work requirements, and clearance procedures contained in this Bulletin Any interim control or abatement procedures of lead-based paint hazards as prescribed by HUD requirements shall be included in the scope of work The HRP shall also attempt to obtain lead-based paint general liability insurance for lead-based paint hazards and encourage contractors to secure lead-based paint hazard liability insurance The HRPC will provide the homeowner with the EPA/HUD Pamphlet "Protect Your Family from Lead in Your Home". The HRPC shall also provide the homeowner with the Lead Based Paint Notification for the homeowner's review and signature The HRPC shall specifically review the notification form with the homeowner and make every effort to ensure the homeowner is aware of the hazards and ways to avoid lead based paint poisoning The executed notification is retained in the homeowner/client's file and a copy is provided to the client. If lead based paint hazards are identified and treated by a certified lead based paint risk Assessment Company, the HRPC shall meet with the recipient and discuss the findings contained in a Risk Assessment Report The recipient shall also sign off on the report to reflect that the findings contained in the Risk Assessment Report were explained and discuss with the recipient. The Risk Assessment Report shall then become a part of the recipient's file. All brochures regarding lead-based paint hazards are available in alternate format for non-English Spanish speaking persons upon request. CONFLICTS OF INTEREST 1) Any person who is an employee, agent, consultant, officer, or elected or appointed official of the City may not obtain a personal or financial interest or benefit from this activity, nor may they have an interest whatsoever, however remote, in a contract, subcontract or proceeds either for themselves, their City cf Apache Junction Horsing Rehabilitation Program Guidelines, ge 24 of 29 family or business ties during their tenure, or for one year thereafter 2) No contract will be awarded to a contractor who is related, or whose employee is related to the applicant by blood or marriage Upon written request to the HRP in care of the Apache Junction Development Services Department, the Development Services Director, or his/her designee, will determine if a conflict exists -- COMPLAINT AND GRIEVANCE PROCEDURE Applicants, Program participants, or contractors may initiate a complaint by submitting concerns in writing to the City of Apache Junction Development Services Director, or his/her designee, at 300 East Superstition Boulevard, Apache Junction, Arizona 85119. The Development Services Director, or his/her designee, is responsible for receiving, reviewing, and responding to all complaints including prequalification of applicant or contractor qualification. The City must issue a written response to any complaint within ten (10) working days of receipt. If unsatisfactory to the complainant, a written appeal of the City's response shall be filed within ten (10) working days of receipt of the City's response Appeals shall be made to the City Manager, by sending such appeal to 300 East Superstition Boulevard, Apache Junction, Arizona, 85119 Attn: City Manager The City Manager shall be the final administrative decision maker Further judicial appeals shall be in accordance with A R S Title 12, 12-901. Assistance from the City in preparing a grievance is available at no charge if needed due to either a disability or language limitation. Assistance will be provided through the Development Services Department at (480) 474-5090 TDD (480) 983-0095; FAX (480) 474-5102 or 300 East Superstition Boulevard, Apache Junction, Arizona 85119 Additionally, the City of Apache Junction has adopted an internal complaint procedure providing for prompt and equitable resolution of complaints alleging any action prohibited by the federal regulations implementing Title II of the Americans with Disabilities Act ("ADA") and Title VI of the Civil Rights Act of 1964, as amended Title II states, in part that"no otherwise qualified disabled individual shall, solely by reason of disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination" in programs or activities sponsored by the city All ADA and Civil Rights complaints made against the city, its employees, representatives, and contractors relating to facilities, programs, services and projects, shall be required to adhere to this process in order to file a grievance. City of Apache Junction Housing Rehabilitation Program Guidelines, page 25 of 29 AO 114 All equal employment opportunity complaints shall be filed with the Human Resources Department and may not be handled in the same manner as ADA and Civil Rights complaints under Titles II and VI. Civil rights complaints are valid when the legal basis for the complaint is due to discrimination on the basis of race, color, national origin, religion, sex, disability, or familial status. Depending on the complaint, the following persons shall be responsible for determining a resolution Complaints filed against the city whether a city program, service or project, will be reviewed by the ADA and Civil Rights Coordinator ("ACRC") and forwarded to any applicable state and/or federal agency as required under their guidelines. Additionally, the Arizona Department of Transportation ("ADOT") Civil Rights Office will be provided all civil rights complaints regardless of the nature of the complaint relevant to a project funded in whole or in part by ADOT funding ADOT will then follow their procedures to determine if the complaint is relevant to their area of jurisdiction. Subsequently, the ACRC and/or ADOT will make a determination and resolve the complaint within 60 calendar days. Complaints filed against a contractor hired by the city shall be reviewed by the ACRC and a copy shall be provided to ADOT within 60 days. The complaint will be reviewed, investigated and resolved within 60 calendar days Complaints should be addressed to. Bryant Powell, ADA and Civil Rights Coordinator, 300 East Superstition Blvd , Apache Junction, Arizona, 85119, (480) 474-5066. 1. A complaint shall be filed in writing or digitally It must contain the name and address of the complainant, and describe the nature and the date of the alleged violation of the regulations The complaint must be signed by the complainant or by someone authorized to do so on his or her behalf A complaint form is available on-line at www aicity net/ada or by asking any city staff member 2 A complaint must be made within 30 calendar days after the complainant becomes aware of the alleged violation. 3 The ACRC will call or meet with the complainant no later than 8 city working days after receipt of the complaint An investigation, if needed or if appropriate, may follow the meeting The investigation shall be conducted by the ACRC Any investigation should be informal but thorough, affording all City of Apache Junction Housing Rehabilitation Program Guidelines. page 26 of 29 interested persons an opportunity to submit information relevant to the complaint 4. The ACRC shall issue, as soon as possible, but not later than 30 calendar days after the complaint is received, a letter or email acknowledging the complaint, which includes a description of the resolution to the complaint The decision of the ACRC shall be binding and final subject only to an appeal pursuant to A.R.S. 12-901, et. seq. 5. The ACRC shall retain all complaint records and associated documents pursuant to the city's record retention requirements, and shall dispose of them in accordance with such policy 6 The right of a person to file a complaint under this procedure shall not affect the complainant's right to pursue other remedies such as filing of a complaint with the responsible federal or state agency. Use of this grievance procedure shall not extend the time for filing any complaint with the responsible federal or state department or agency MARKETING The Housing Rehabilitation Program will be marketed using the following media Brochures, Flyers, City of Apache Junction Website, the Housing Programs and Services Newsletter, The Citizen (Parks & Recreation Publication), City of Apache Junction's Cable Channel, the city's grants blog www.apachejunctiongrants.wordpress corn, and local newspapers including AJ News and the Independent Direct marketing to neighborhoods may also be conducted by mailing a postcard to residents within a targeted area notifying them of the city's programs Distribution of marketing materials will be through a local network of human/social services agencies and at general posting locations throughout the city which include but are not limited to the outlets below Human/Social Service Agencies TRIAD Neighborhood Watch Groups Final County Housing Final County Volunteer Center CAAFA CAAG RSVP Program ABIL CAHRA Salvation Army Area HOA's Apache Junction Food Bank Boy's and Girl's Club Project Help HOPE Women's Center Apache Junction Senior Center Apache Junction School District Apache Junction Community Development Corporation Apache Junction Chamber of Commerce City of Apache Junction Housing Rehabilitation Program Guidelines, page 27 of 29 Central Arizona Council on Development Disabilities City of Apache Junction Victim Assistance (Police Department) City of Apache Junction Victim Advocate (City Attorney's Office) Superstition Mountain Mental Health Center Posting Locations City Hall Library Parks and Recreation Multigenerational Center The City will make every effort to accommodate persons with disabilities and non- English speaking persons See the section entitled Assistance to Applicants for additional information STAFFING AND ADMINISTRATIVE REVIEW All administrative and supervisory work will be done by city staff Procedures to protect applicants, HRP participants, and contractors are outlined in the sections entitled Complaint and Grievance Procedure and Non-Discrimination. The City of Apache Junction's HRPC will be responsible for the following: application intake, income verification, case management; contractor procurement; change order approvals, and final inspection The HRPC can be reached at 300 East Superstition, Apache Junction, Arizona 85119. The HRPC can also be contacted at (480) 474-5090 or TDD (480) 983-0095 Development Revenue Program Svcs.Director Dev. Manage Coordinator City Manager Assistant City .•. t►Aanager Finance Director NON DISCRIMINATION The City of Apache Junction, or any of its sub recipients, do not discriminate in any activity on the basis of race, color, religion, sex, disability, familial status, or national origin The City of Apache Junction is an Equal Opportunity Employer, Minority Contractors participation is encouraged DBE/MBE/WBE. A copy of the City's Equal Employment Opportunity Policy is available on-line at http //www aicity net/index aspx9nid=556 City of Apache Junction Housing Rehabilitation Program Guidelines; page 28 of 29 ASSISTANCE TO APPLICANTS Should an individual need assistance in preparation of an application, assistance will be provided, at no charge, through the Development Services Department The Department can be reached at 300 East Superstition, Apache Junction, Arizona 85119. Assistance can also be requested at (480) 474-5090 or TDD (480) 983- 0095. Applicants may request assistance because of a 1) physical/mental/ emotional disability or 2) limited ability to speak/read English. FAIR LABOR STANDARDS The provisions of the FLSA are not applicable to the rehabilitation of single family homes under this program APPLICABLE DOCUMENTS The city's HRP uses guidance from the following sources of information pertaining to the administration of the HRP 1) Arizona Department of Housing Owner Occupied Housing Rehabilitation Standards 2) United States Department of Housing and Urban Development Housing Quality Standards. 3) United States Environmental Protection Agency Information regarding Lead Based Paint 4) Arizona Department of Housing, State Housing Fund Program Summary and Application Guidelines. 5) Arizona Department of Housing Community Development Block Grant Handbooks 6) Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards 7) City of Apache Junction City Ordinances and adopted Building Codes 8) City of Apache Junction Housing Rehabilitation Program Construction Guidelines. CHANGES TO HOUSING REHABILITATION PROGRAM GUIDELINES The Housing Rehabilitation Program Guidelines are generally adopted with revisions annually, however should an emergency change within the Housing Rehabilitation Guidelines as adopted by the city council be required throughout the program year, the Mayor shall submit a letter in writing to the Arizona Department of Housing ten (10) days prior to the change coming into effect City of Apache Junction Housing Rehabilitation Program Guidelines. page 29 of 29 FORMS A complete packet of forms utilized by the City's Housing Rehabilitation Program are available upon request. Below is the listing of those forms Form form Application which includes Authorization for Work Write Up including cost estimates Release of Info,Verification of Employment, Owner Acceptance of Work Write Up Affidavit of Non-Income,Declaration of Contractor Participation Statement Citizenship Contract between Contractor and Owner Income Verification Determination Sheet Owner's Color Preference Verification Agreement which includes Certification of Change Orders Principal Residence,Federal Assistance Final Acceptance of Work Completed Notice,Complaint and Grievance Procedure, Final Invoice and Waiver of Lien Disclaimer Truth In Lending Form, Right of Rescission Promissory Note, Development Services Due Diligence Deed of Trust,Release of Lien of City of Apache Junction Housing Rehabilitation Program Guidelines, page 30 of 29 /'1., ROLL CALL VOTE NOTES 0,cy --) I (45/ ITEM # \1b MEETING OF MOTION BY W/‘ SECONDED BY: V , /c YES NO ABSTAINED COUNCILMEMBER EVANS V VICE MAYOR BARKER v COUNCILMEMBER RIZZI ✓ COUNCILMEMBER WALDRON i COUNCILMEMBER SERDY f COUNCILMEMBER WILSON MAYOR INSALACO UNANIMOUS IN FAVOR OPPOSED ABSTAINED TOTAL CONSENT AGENDA ITEM NOS. 1-5 I MOVE THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED; AND Adis THAT RESOLUTION NO. 15-06, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING SUBMISSION OF A GRANT APPLICATION TO THE VALLEY METRO REGIONAL PUBLIC TRANSPORTATION AUTHORITY FOR PARTICIPATION IN ITS FISCAL YEAR 2015 LOCAL TRANSPORTATION ASSISTANCE FUND II PROGRAM, BE APPROVED; AND THAT RESOLUTION NO. 15-02, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, COMMITTING LOCAL FUNDS AS LEVERAGE FOR FY 2014 STATE SPECIAL PROJECTS ("SSP") APPLICATION(S), BE APPROVED; AND THAT RESOLUTION NO. 15-03, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE SUBMISSION OF AN APPLICATION(S) FOR STATE HOUSING FUNDS, WHICH MAY INCLUDE FEDERAL FUNDING THROUGH THE HOME INVESTMENT PARTNERSHIP PROGRAM OF STATE HOUSING FUNDS, CERTIFYING THAT SAID APPLICATION(S) MEET THE COMMUNITY'S HOUSING AND COMMUNITY DEVELOPMENT NEEDS AND THE REQUIREMENTS OF THE STATE HOUSING PROGRAMS,AND AUTHORIZING ACTIONS NECESSARY TO IMPLEMENT AND COMPLETE THE ACTIVITIES OUTLINED IN SAID APPLICATION(S), BE APPROVED, AND 'am" THAT RESOLUTION NO 15-04, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, COMMITTING LOCAL FUNDS AS LEVERAGE FOR A FY 2014-15 STATE HOUSING FUND APPLICATION, BE APPROVED, AND THAT RESOLUTION NO. 15-05, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE ADOPTION OF OWNER OCCUPIED HOUSING REHABILITATION GUIDELINES DATED FEBRUARY 1, 1994, AS AMENDED, IN RELATION TO A HOUSING REHABILITATION ACTIVITY, BE APPROVED. AIM I. �, ���'A City of Apache Junction, Arizona 300E Superstition 4 Boulevard Agenda Item Cover Sheet Apache Junction,AZ 85119 Agenda Item No 6 File ID 14-606 Sponsor: Bryant Powell Agenda Date• 1/20/2015 Index* In Control City Council Meeting City manager's report Attachments' City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 sank 40`11 `-% City of Apache Junction, Arizona 300 E Superstition Fy <2z Boulevard � Agenda Item Cover Sheet Apache Junction AZ 85119 Agenda Item No 7. File ID: 14-646 Sponsor.Janine Solley Agenda Date 1/20/2015 Index In Control. City Council Meeting Update and discussion on the Arizona Office of Tourism Marketing Cooperative Attachments City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 0144 PUBLIC HEARING 1. For SPECIAL EVENT LIQUOR LICENSE FOR CACTUS CANYON JUNIOR HIGH PTO FOR FEBRUARY 28,2015. 2. Will CITY CLERK KATHY CONNELLY speak to the Council? 3. Will the applicant or spokesperson please speak to the Council on this item? 4. Is there anyone from the public who wishes to speak on this item? (Are there any "Request to Speak" forms?) 5. If not, this hearing is closed. 6. Is there any discussion? 7. Call for a motion. 8. Call for a second. 9. Roll call vote. City of Apache Junction, Arizona 300 E Superstition Boulevard 5 Agenda Item Cover Sheet Apache Junction,AZ 85119 • Agenda Item No.8. File ID: 14-652 Sponsor. Kathy Connelly Agenda Date 1/20/2015 Index: Local/State/Federal Statutory Requirement In Control City Council Meeting Consideration of and action on the application for a special event liquor license for Cactus Canyon Junior High PTO for February 28, 2015, at 3301 S Goldfield Road The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control Attachments. City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 JANUARY 7, 2015 MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS THROUGH GEORGE R. HOFFMAN, CITY MANAGER THROUGH KATHLEEN CONNELLY, CITY CLERK FROM JAN MASON, DEPUTY CITY CLERK SUBJECT AGENDA ITEM FOR JANUARY 20, 2015 APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR CACTUS CANYON JUNIOR HIGH PTO An application for a Special Event Liquor License has been submitted by Ms. Dena Kimble of the Cactus Canyon Junior High PTO for February 28, 2015, at 3301 S. Goldfield Road, Apache Junction Correspondence has been received from the building division, planning division, police department and fire district, a copy of which is attached The next step in the procedure is for the city council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the state department of liquor licenses and control. FOR DLLC USE ONLY Arizona Department of Liquor Licenses and Control Event date(s) 800 W Washington 5th Floor Phoenix AZ 85007-2934 www azliquor gov Event time start/end (602) 542-5141 APPLICATION FOR SPECIAL EVENT LICENSE Fee= $25.00 per day for 1-10 days (consecutive) A service fee of$25.00 will be charged for all dishonored checks (A R S §44-6852) .1M. IMPORTANT INFORMATION:This document must be fully completed or it will be returned The Department of Liquor Licenses and Control must receive this application ten (10) business days prior to the event. If the special event will be held at a location without a permanent liquor license or if the event will be on any portion of a location that is not covered by the existing liquor license, this application must be approved by the local government before submission to the Department of Liquor Licenses and Control (see Section 15). SECTION 1 Name of Organization' G ff C f k s. G/f,✓yv.✓ •l-t-,✓i o,- ,4/ 4 , 7-0 -2 -'c, SECTION 2 Non-Profit/IRS Tax Exempt Number: �r- SECTION 3 The organization is a (check one box only) Charitable (501 C) ❑Fratemal (must have regular membership and have been in existence for over five (5) years) ❑Religious ❑Civic (Rotary, College Scholarship) ❑Political Party, Ballot Measure or Campaign Committee SECTION 4 Will this event be held on a currently licensed premise and within the already approved premises? ❑Yes uNo Name of Business License Number Phone(include Area Code) SECTION 5 How is this special event going to conduct all dispensing, serving, and selling of spintuous liquors? Please read R-19-318 for explanation (look in special event planning guide) and check one of the following boxes ID Place license in non-use ❑D�Dispense and serve all spirituous liquors under retailer's license LlDispense and serve all spirituous liquors under special event ❑Split premise between special event and retail location (If not using retail license, submit a letter of agreement from the agent/owner of the licensed premise to suspend the license during the event If the special event is only using a portion of premise, agent/owner will need to suspend that portion of the premise) , SECTION 6 What is the purpose of this event? en-site consumption ❑Off-site (auction) ❑Both SECTION 7 Location of the Event* Do/c e Lli f� Address of Location , O P/c% ffpritc- c'T..,o 71.42,,>s//7Z Street Cy County/State Zip SECTION 8 Will this be stacked with a wine festival/craft distiller festival? ❑Yes 221No SECTION 9 Applicant must be a member of the qualifying organization and authorized by an Officer, Director or Chairperson of the Organization named in Section 1 (Authorizing signature is required in Section 13.) 1 Applicant (7/1/2 /e e,✓/� /�f,�r, � - e2 - /96-5— Last First Middle Date of Birth 2 Applicant's mailing address* 93/ /9 c he .1�//c7iU-/ 'I ?S //9 Street City State Zip 3 Applicant's home/cell phone. (ye') 9yty -PZyF/ Applicant's business phone ( ) 4 Applicant's email address' ('C p-f©7P/C S /Cif n-il 0(7/1-7a n-? 10/17/14 Page 1 of 4 individuals requiring ADA accommodations call(602)542-9027. SECTION 10 1 Has the applicant been convicted of a felony, or had a liquor license revoked within the last five (5) years? ❑YesNo (If yes attach explanation) 2 How many special event licenses have been issued to this location this year? (The number cannot exceed 12 events per year,exceptions under A R S §4 203 02(D) ) ,,,,,��N 3. Is the organization using the services of a promoter or other person to manage the event? Dyes LJo (If yes,attach a copy of the agreement) 4 List all people and organizations who will receive the proceeds. Account for 100% of the proceeds The organization applying must receive 25% of the gross revenues of the special event liquor sales Attach an additional page if necessary Name C4c f 145 C_,9.yyo.� Tom. /4 ' h /;-c2 Percentage U Address FG/ r.✓ / /0/9C 71/"Lic-/-,27 , PS"/d-� Street City State Zip Name Percentage Address Street City State Zip 5 Please read A R S §4-203 02 Special event license; rules and R19-1-205 Requirements for a Special Event License. Note: ALL ALCOHOLIC BEVERAGE SALES MUST BE FOR CONSUMPTION AT THE EVENT SITE ONLY. "NO ALCOHOLIC BEVERAGES SHALL LEAVE SPECIAL EVENT UNLESS THEY ARE IN AUCTION SEALED CONTAINERS OR THE SPECIAL EVENT LICENSE IS STACKED WITH WINE /CRAFT DISTILLERY FESTIVAL LICENSE" 6 What type of security and control measures will you take to prevent violations of liquor laws at this event? (List type and number of police/security personnel and type of fencing or control barriers it applicable) Number of Police Number of Security Personnel OFencing OBarriers Explanation. //•r-, „r Sie_p /1 I Gs sle e_r e SECTION 11 Date(s) and Hours of Event. May not exceed 10 consecutive days See A R S §4-244(15) and (17) for legal hours of service. Date Day of Week Event Start License End Time AM/PM Time AM/PM DAY 1 a/Z �� �� .�T[�i9 �O fi /Op' DAY 2. DAY 3 DAY 4 DAY 5 DAY 6• DAY 7 DAY 8• DAY 9 DAY 10 10/17/14 Page 2 of 4 Individuals requiring ADA accommodations call(602)542-9027 SECTION 12 License premises diagram The licensed premises for your special event is the area in which you are authorized to sell, dispense or serve alcoholic beverages under the provisions of your license. The following space is to be used to prepare a diagram of your special event licensed premises Please show dimensions, serving areas, fencing, barricades, or other control measures and security position. N 10/17/14 Page 3 of 4 Individuals requiring ADA accommodations call(602)542-9027 6 // 19 \\ y 18 II II It 11 TABLE LAYOUT ,,.... _-_, . -:.- . 1 // 20 �� ye, n II II 111 �� 4/ ,. . I4 x1 00 // , // 16 11 11 If 11 �� �. �, 4/ \` `„� I/ 1 yak // ee // �� // 14 �� // i�_.' 11 II Il II 1► 11 11 11 I1 1 ` �' ` // 6 � // \\ // 8 V // 9 1 // 10 ____ • 11 11 II 11 II 11 1 11 II 11 ,\\ ` I/ \\ ` I/ �� ,. I/ �� I/ \\ I/ .. ,, // ♦� // \\ // �� // 4 \\ // ,, I I 11 I I 11 11 11 11 11 .11 II �� I/ \\ I4 �� I� �`� • I/ \\ I4 t VV+Aln 000(c )-KIT- SECTION 13 This section is to be completed only by an Officer, Director or Chairperson of the organization named in Section 1 I, e u, , .--n if ie., declare that I am an OFFICER, DIRECTOR, or CHAIRPERSON (Print full name) appointing the applicant listed in Section 9, to apply on behalf of the foregoing organization for a Special Event Li or License (Sign Title/Position Dale Phone# The foregoing instrument was acknowledged before me this —'.. 1>L-L( ✓V� ( Day State .\ �C County of 1 1C�,2 CC `�\ • - ;.;1 ,r / IrtyCc nFOrcS My Commission Expires on 05/, Date Signature of Notary Public SECTION 14 This section is to be completed only by the applicant named in Section 9 6.44 t J � declare that I am the APPLICANT filing this application as (Print full name) listed in Section 9 I have read the application and the contents and all statements are true, correct and c plete < et C(-1 4 ,..2/.7.2/, (at- 1-42$11/ a ure) Title/Position Date Phone# The foregoing instrument was acknowledged before me this ;T. sc L 0,til ? 7 ,rtiC 1�� Day Month Year State iA. 0 l�_�v.-TA-County el My Commission Expires on _ • •. ate Signature of NotaryPublic 9 The local governing body may require additional applications to be completed and submitted Please check with local government as to how far in advance they require these applications to be submitted Additional licensing fees may also be required before approval may be granted For more information please contact your local Jurisdiction. http.//www.azliauor.aov/assets/documents/homepaae dots/spec event links pdf SECTION 15 Local Governing Body Approval Section recommend APPROVAL ❑ DISAPPROVAL (government official) (Title) on behalf of , (City Town County) Signature Date Phone FOR DEPARTMENT OF LIQUOR LICENSES AND CONTROL USE ONLY DAPPROVAL ❑ DISAPPROVAL BY. DATE 10/17/14 Page 4 of 4 Individuals requiring ADA accommodations call(602)542 9027 PpA H oti .� f AO"' Home of the Superstition Mountains 4 - 00 December 22, 2014 Cactus Canyon Junior High PTO, Inc Attn: Dena Marie Kimble 3931 N. Marlow Apache Junction, AZ 85119 Dear Ms Kimble: Please be advised that your application for a Special Event Liquor License for the Cactus Canyon Junior High PTO, Inc for February 28, 2015 at 3301 S Goldfield Road has been scheduled for a public hearing. The Apache Junction City Council will hold a public hearing on January 20, 2015, at 7:00 p m in the City Council Chambers, 300 E. Superstition Blvd , Apache Junction, at which time recommendation for approval or disapproval will be made to be forwarded to Arizona Department of Liquor Licenses and Control Your attendance is requested should council have any questions on this application. If you have any questions concerning this matter, please contact my office at (480) 982-8002. Sincerely, 77 / Kathleen Connell 7 1 City Clerk -{ -4. 6�`.` ice' ( ) •Voice(480)982-8002 • FAX (480)982-7018 •TDD(480)983-0095 •www ajctty.net 300 E Superstition Boulevard, Apache Junction,AZ 85119 DECEMBER 22, 2014 MEMORANDUM TO: DEPARTMENT OF PUBLIC SAFETY BUILDING DIVISION PLANNING DIVISION APACHE JUNCTION FIRE DISTRICT THROUGH KATHLEEN CONNELLY, CITY CLERK FROM JAN MASON, DEPUTY CITY CLERK SUBJECT APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR CACTUS CANYON JUNIOR HIGH PTO, INC Ms Dena Marie Kimble has submitted an application for a Special Event Liquor License for February 28, 2015 at 3301 S Goldfield Road, Apache Junction Please conduct the necessary inspections and submit your recommendation be email by Wednesday, January 7, no later than noon, in order for this item to be placed on the agenda for the City Council meeting of January 20, 2015. Janet Mason From: Dennis Dixon Sent: Tuesday, December 23, 2014 1.07 PM To: Janet Mason Subject: RE application for a special event liquor license for Cactus Canyon Junior High PTO - correct application No concerns Awl\ From: Janet Mason Sent: Tuesday, December 23, 2014 10:13 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga@sfmd.az.gov) Subject: application for a special event liquor license for Cactus Canyon Junior High PTO -correct application I have received an application for a special event liquor license for Cactus Canyon Junior High PTO Please have your department recommendation to me no later than Wednesday,January 7, in order to this to be on the January 20 agenda Thanks 1 Janet Mason From: Rudy Esquivias Sent: Wednesday,January 07, 2015 1.01 PM To: Janet Mason; Dennis Dixon,Jeff Robinson,John Suniga (john.suniga@sfmd az gov) Subject: RE. application for a special event liquor license for Cactus Canyon Junior High PTO - correct application The Planning Division has no objections to this one-time event Any event day signage should be kept on private property(not in the right-of-way) and be removed immediately following the event. Thanks. L uivias Senior Planner/Zoning Administrator City of Apache Junction 300 E. Superstition Blvd Apache Junction, AZ 85119 480-474-2645 resquivias@ajcity net SERVICE OVER AND ABOVE THE REST (Development Services Department office hours. Monday through Thursday from 7:00am to 6.00pm, closed Fridays and Holidays ) From: Janet Mason Sent: Tuesday, December 23, 2014 10:13 AM To: Dennis Dixon, Rudy Esquivias; Jeff Robinson, John Suniga (john.suniga@sfmd.az gov) Subject: application for a special event liquor license for Cactus Canyon Junior High PTO -correct application have received an application for a special event liquor license for Cactus Canyon Junior High PTO. Please have your Jepartment recommendation to me no later than Wednesday,January 7, in order to this to be on the January 20 agenda. Thanks i Janet Mason From: Jeff Robinson Sent: Wednesday, December 24, 2014 9'33 AM To: Janet Mason Cc: Thomas Kelly;Troy Mullender Subject: RE application for a special event liquor license for Cactus Canyon Junior High PTO - correct application Janet, I met with Pat at Dolce Vita in reference to this event. In the application Cactus Canyon list that they are going to hire a bartending service for the event. I explained that if a bartending company was going to serve alcohol at their facility that the bartending license must be displayed a the location of the bar or service window If this requirement is met the police department has no objection to the special event liquor license for Cactus Canyon Junior High PTO From: Janet Mason Sent: Tuesday, December 23, 2014 10:13 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga@sfmd.az.gov) Subject: application for a special event liquor license for Cactus Canyon Junior High PTO - correct application I have received an application for a special event liquor license for Cactus Canyon Junior High PTO Please have your department recommendation to me no later than Wednesday,January 7, in order to this to be on the January 20 agenda Thanks. It ' - Superstition Fire & Medical District °r FA �ec 3700 E 16th Avenue, Apache Junction, AZ 85119 Phone (480) 982-1299, Fax (480) 982-3268 .20.0 ��..,,....�� www sfind az go MEMORANDUM TO Jan Mason,Deputy City Clerk City of Apache Junction 300 E Idaho Road Apache Jct ,AZ 85219 FROM: John Sumga,Deputy Fire Marshal DATE December 24,2014 SUBJECT. Application for Special Event Liquor License for 3301 S. Goldfield The Superstition Fire/Medical Distnct has reviewed the application as noted above regarding the facilities at 3301 S Goldfield for an event to be held on February 28th, 2015 We have recently completed an annual fire and life safety inspection with no major violations found We therefore would recommend approval of this application Thank you for your notification on this matter If you have any further questions regarding this inspection, please feel free to contact my office at 982-1299 Thank You ATTN: Application VOTE ROLL CALL NOTES: //1.)/c/ 6000 ITEM # MEETING OF ' bvivi>Vt\i MOTION BY: SECONDED BY yi/S NO ABSTAINED MR WILSON MR WALDRON MRS RIZZI MR SERDY i/ MRS EVANS VICE CHAIRPERSON BARKER CHAIRPERSON INSALACO UNANIMOUS IN FAVOR OPPOSED ABSTAINED TOTAL ITEM NO. 8 I MOVE THAT THE APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR CACTUS CANYON JUNIOR HIGH PTO FOR FEBRUARY 28, 2015, SUBMITTED BY DENA KIMBLE, BE RECOMMENDED (FOR APPROVAL) OR(FOR DENIAL) TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL PUBLIC HEARING 1. For SPECIAL EVENT LIQUOR LICENSE FOR SUPERSTITION MOUNTAIN ROTARY CLUB FOR LOST DUTCHMAN DAYS ON FEBRUARY 27—MARCH 1, 2015. 2. Will CITY CLERK KATHY CONNELLY speak to the Council? 3. Will the applicant or spokesperson please speak to the Council on this item? 4. Is there anyone from the public who wishes to speak on this item? (Are there any "Request to Speak" forms") 5. If not, this hearing is closed. 6. Is there any discussion? 7. Call for a motion. 8. Call for a second. 9. Roll call vote. 4 T J City of Apache Junction, Arizona 300 E Superstition Boulevard 0; Agenda Item Cover Sheet Apache Junction,AZ 85119 `;zi • Agenda Item No 9 \iviec za File ID. 14-653 Sponsor Kathy Connelly Agenda Date. 1/20/2015 Index. Local/State/Federal Statutory Requirement In Control-City Council Meeting Consideration of and action on the application for a special event liquor license for Superstition Mountain Rotary Club for Lost Dutchman Days on February 27- March 1, 2015, at 1590 E Lost Dutchman Boulevard The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control Attachments. City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 JANUARY 7, 2015 MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS THROUGH KATHY CONNELLY, CITY CLERK FROM JANET R MASON, DEPUTY CITY CLERK SUBJECT AGENDA ITEM FOR JANUARY 20, 2015: APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR SUPERSTITION MOUNTAIN ROTARY CLUB An application for a special event liquor license has been submitted by Mr Michael Cowan of Superstition Mountain Rotary Club for the Lost Dutchman Days special event on February 27-March 1, 2015 at 1590 E Lost Dutchman Boulevard, Apache Junction, Arizona Correspondence has been received from the planning division, building division and police department, a copy of which is attached. The fire district is still pending and will be forwarded upon its receipt The next step in the procedure is for the city council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control Am. ... FOR DLLC USE ONLY Arizona Department of Liquor Licenses and Control Event date(s) 800 W Washington 5th Floor Phoenix AZ 85007-2934 www azliquor.gov Event time start/end (602) 542-5141 APPLICATION FOR SPECIAL EVENT LICENSE Fee= $25.00 per day for 1-10 days (consecutive) A service fee of$25.00 will be charged for all dishonored checks (A.R.S. §446852) IMPORTANT INFORMATION:This document must be fully completed or it wi l be returned. The Department of Liquor Licenses and Control must receive this application ten (10) business days prior to the event If the special event will be held at a location without a permanent liquor license or if the event will be on any portion of a location that is not covered by the existing liquor license, this application must be approved by the local government before submission to the Department of Liquor Licenses and Control(see Section 15). SECTION 1 Name of Organization' Superstition Mountain Rotary Club#1246 District 5510 SECTION 2 Non-Profit/IRS Tax Exempt Number 86-6038193 SECTION 3 The organization is a (check one box only) ❑Charitable (501 C) ❑Fraternal (must have regular membership and have been in existence for over five (5)years) ❑Religious CICivic (Rotary,College Scholarship) ❑Political Party,Ballot Measure or Campaign Committee SECTION 4 Will this event be held on a currently licensed premise and within the already approved premises? ❑Yes BNo Name of Business License Number Phone(include Area Code) SECTION 5 How is this special event going to conduct all dispensing, serving, and selling of spirituous liquors? Please read R-19-318 for explanation (look in special event planning guide) and check one of the following boxes. ❑Place license in non-use ❑Dispense and serve all spirituous liquors under retailer's license Dispense and serve all spirituous liquors under special event ❑Split premise between special event and retail location ,.� (If not using retail license submit a letter of agreement from the agent/owner of the licensed premise to suspend the license dunng the event If the special event is only using a portion of premise,agent/owner will need to suspend that portion of the premise) SECTION 6 What is the purpose of this event? ®On-site consumption ❑Off-site (auction) [Moth SECTION 7 Location of the Event. Apache Junction Rodeo Grounds Address of Location 1590 E Lost Dutchman Blvd Apache Junction Arizona Pinal 85219 Street City County/State Zip SECTION 8 Will this be stacked with a wine festival/craft distiller festival? ❑Yes II No SECTION 9 Applicant must be a member of the qualifying organization and authorized by an Officer,Director or Chairperson of the Organization named in Section 1. (Authorizing signature is required in Section 13) 1.Applicant. Cowan Michael Bernard 9/14/1954 Last First Middle Date of Birth 2 Applicant's mailing address 17844 E Pacana Ct Gold Canyon Az 85118 Street City State Zip 3 Applicant's home/cell phone' (480) 689-3812 Applicant's business phone (_) n/a 4 Applicant's email address mbcowanI@msn corn 10/17/14 Page 1 of 4 individuals requiring ADA accommodations call(602)542-9027 SECTION 10 1 Has the applicant been convicted of a felony,or had a liquor license revoked within the last five (5) years? ❑Yes InNo (If yes,attach explanation) 2 How many special event licenses have been issued to this location this year? 2 (The number cannot exceed 12 events per year,exceptions under A.R.S §4-203.02(D).) 3 Is the organization using the services of a promoter or other person to manage the event? ❑Yes @No (If yes,attach a copy of the agreement) 4 List all people and organizations who will receive the proceeds Account for 100% of the proceeds The organization applying must receive 25% of the gross revenues of the special event liquor sales. Attach an — additional page if necessary. Name Superstition Mountain Rotary Club #1246 Percentage 50% gross Address Po Box 565 Apache Junction Az 85117 Street City State Zip Name NJ Mounted Rangers/Superstition Promo Corp. Percentage 25%/25% net each =50% net Address Po Box 699/ Po Box 5241 Apache Junction Az 85178 Street City State Zip 5 Please read A R S §4-203.02 Special event license,rules and R19-1-205 Requirements for a Special Event License Note. ALL ALCOHOLIC BEVERAGE SALES MUST BE FOR CONSUMPTION AT THE EVENT SITE ONLY. "NO ALCOHOLIC BEVERAGES SHALL LEAVE SPECIAL EVENT UNLESS THEY ARE IN AUCTION SEALED CONTAINERS OR THE SPECIAL EVENT LICENSE IS STACKED WITH WINE/CRAFT DISTILLERY FESTIVAL LICENSE" 6.What type of security and control measures will you take to prevent violations of liquor laws at this event? (List type and number of police/security personnel and type of fencing or control barriers,if applicable) on call Number of Police 20 Number of Security Personnel @Fencing @Barriers Explanation. Trained AJ Rangers (mounted and uniformed)will provide security. Potential underage drinkers are required to verify age with picture ID. Will be wrist banded after proving age. Alcohol may not be brought in or removed from event area. AJ Police will be requested if needed. SECTION 11 Date(s) and Hours of Event. May not exceed 10 consecutive days. See A.R S §4-244(15) and (17) for legal hours of service Date Day of Week Event Start license End Time AM/PM lime AM/PM DAY 1 Feb. 27, 2015 Fnday 10.00 AM 11:59 PM DAY 2. Feb 28, 2015 Saturday 10:00 AM 11.59 PM DAY 3 Mar. 1, 2015 Sunday 10.00 AM 11:59 PM DAY 4. DAY 5. DAY 6: DAY 7. DAY 8: DAY 9 DAY 10. 10/17/14 Page 2 of 4 Individuals requiring ADA accommodations call(602)542-9027 Species Event Migrant (Show dimensions,serving areas,,and Mel type of enclosure and security positions) NOTE Show nurse cross shoes,hiphwsy.or toad If location doesn't hew an address. P x fr- 'A Plealcit,i9 4 NT /Ilk -tLePan, RIOWerat Orarng V D PatUCL AMN CrIWC . i F env _____ ____ _ Eirivrec li _ a iii _,.„. 7.'„'"...-.4 iii . va, .... GATE" ce7.4,Ternor Ari'Emn 6RfF -- r , ir It /W*MVO) 0 0" X,. Gi¢Tc4 Fe4 / � Tr R /W D JeG+CFD i,n€ GATE + .1 1 ttt IDS r fluTcJ1 e'?4If 13L.vD Q A t-B BEE"? 5T4'Q 5 dPEito &tWave- Po D EtAPOT 1§ A- smi,o o P _Po_ roiz goo pomice cc c -t"Q 8ER 577iwos 04E4' Trnimirrsq our Vea r 4t F-f-6- pow/Irk- camp 6 .1rt3 ARC Et sr' �- lf4Ad►IIGE-AfFs-r Ril 4- PR?SooveL . IvDr Su12 C.r 7V E' fT l/Quo L-ICe sal- _ SECTION 13 This section is to be completed only by on Officer, Director or Chairperson of the organization named in Section 1. . I, .!1 � L. 1 v declare that I am an OFFICER, DIRECTOR, or CHAIRPERSON (Pnnt full name) appointing the applicant liistpd in Section 9,to apply on behalf of the foregoing organization for a Special Event Liquor Lia4nse./ • .>''(� / X • , f ;/ (Signature)" Title/Position Date' Phone# Oak. The foregoing instrument was acknowledged before me this Day Month Year S)'ate County of My Commission Expires on- Date Signature of Notary Public SECTION 14 This section is to be completed only by the applicant named in Section 9. Michael Bernard Cowan declare that I am the APPLICANT filing this application as (Pnnt full name) listed in S 'on 9. I; ave rea e application and the contents and all statements are true, correct and comp Chairperson 12/18/2014 480-689-3812 nature Title/Position Date Phone# The fo going instrument was acknowledged before me this Fri •;01 Day ' Maeesa v Cox �y . Nota Public S to L County of l t « i ( ..�,t., � penal County,Arizona My Commission Expires on. L-1 I Li &A , ► ti14/ , My Comm Expires April 14, 018 .. Date Signature of Nota Public �.�. The local governing body may require additional applications to be completed and submitted Please check with local government as to how far in advance they require these applications to be submitted. Additional licensing fees may also be required before approval may be granted. For more information, please contact your local jurisdiction http//www.azliauor.gov/assets/documents/homepage docs/spec event links.pdf. SECTION 15 Local Governing Body Approval Section recommend ❑APPROVAL ❑ DISAPPROVAL (government official) (rule) on behalf of , (City,Town,County) Signature Date Phone FOR DEPARTMENT OF LIQUOR LICENSES AND CONTROL USE ONLY ❑APPROVAL 0 DISAPPROVAL BY. DATE 10/17/14 Page 4 of 4 Individuals requiring ADA accommodations call(602)542-9027 tsA H ri6 9/eVA a CA e4ft/Fte tied V ti J Home of the Superstition Mountains 4 - pN• December 23, 2014 Michael Cowan Superstition Mountain Rotary Club#1246 17844 E Pacana Court Gold Canyon, AZ 85118 Dear Mr Cowan Re Application for Special Event Liquor License Please be advised that your application for a Special Event Liquor License for Lost Dutchman Days for February 27-March 1, 2015 has been scheduled for a public hearing The public hearing will be at the Apache Junction City Council regular meeting on January 20, 2015, at 7.00 p.m., at the City Council Chambers, 300 E. Superstition Blvd., Apache Junction, at which time a recommendation for approval or disapproval will be made to be forwarded to Anzona Department of Liquor Licenses and Control It is strongly recommended that you attend this meeting in the event that council has some questions on this application. If you have any questions concerning this matter, please contact my office at 982-8002, option 5. Sincerely, Kathleen Connelly ``e City Clerk •Voice(480)982-8002 • FAX(480) 982-7018 • TDD (480)983-0095 • www ajcity net 300 E Superstition Boulevard, Apache Junction,AZ 85119 DECEMBER 23, 2014 MEMORANDUM TO DEPARTMENT OF PUBLIC SAFETY PLANNING DIVISION APACHE JUNCTION FIRE DISTRICT THROUGH: KATHLEEN CONNELLY, CITY CLERK FROM. JAN MASON, DEPUTY CITY CLERK SUBJECT: APPLICATION FOR SPECIAL EVENT LIQUOR LICENSE FOR SUPERSTITION MOUNTAIN ROTARY CLUB #1246 Mr Michael Cowan has submitted an application for a special event liquor license for February 27-March 1, 2015, for Lost Dutchman Days, located at 1590 E Lost Dutchman Boulevard, Apache Junction, Arizona Please conduct the necessary inspections and submit your recommendation by Wednesday, January 7, 2015, in order for this to be heard at the city council meeting of January 20, 2015 Janet Mason From: Dennis Dixon Sent: Tuesday, December 23, 2014 1:07 PM To: Janet Mason Subject RE- Superstition Mountain Rotary Club Lost Dutchman Days special event No concerns From: Janet Mason Sent: Tuesday, December 23, 2014 11:39 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga@sfmd.az.gov) Subject: Superstition Mountain Rotary Club Lost Dutchman Days special event I have received a special event liquor license application from Superstition Mountain Rotary Club for Lost Dutchman Days, February 27—March 1, 2015 Please have your department recommendations to me no later than Wednesday, January 7, in order for this to be on the January 20 agenda Thanks. I. Janet Mason From: Rudy Esquivias Sent: Wednesday,January 07, 2015 3 44 PM To: Janet Mason, Dennis Dixon,Jeff Robinson;John Suniga(lohn suniga@sfmd az gov) Subject: RE. Superstition Mountain Rotary Club Lost Dutchman Days special event Jan Adak The Planning Division has no objections to this yearly event. dt1,44AlLiViCLS Senior Planner/Zoning Administrator City of Apache Junction 300 E. Superstition Blvd Apache Junction, AZ 85119 480-474-2645 resquivias@a-lcity.net SERVICE OVER AND ABOVE THE REST (Development Services Department office hours: Monday through Thursday from 7:00am to 6 OOpm, closed Fridays and Holidays.) From: Janet Mason Sent: Tuesday, December 23, 2014 11.39 AM To: Dennis Dixon, Rudy Esquivias; Jeff Robinson; John Suniga (John suniga@sfmd.az.gov) Subject: Superstition Mountain Rotary Club Lost Dutchman Days special event I have received a special event liquor license application from Superstition Mountain Rotary Club for Lost Dutchman Days, February 27—March 1, 2015 Please have your department recommendations to me no later than Wednesday, January 7, in order for this to be on the January 20 agenda Thanks .-. i Janet Mason From: Jeff Robinson Sent: Tuesday, December 30, 2014 9.45 AM To: Janet Mason Cc: Thomas Kelly;Troy Mullender Subject: RE• Superstition Mountain Rotary Club Lost Dutchman Days special event .••.The police department has no objections to the request of special event liquor license for the Rotary Club during Lost Dutchman Days, February 27, 2014-March 1,2015. From: Janet Mason Sent: Tuesday, December 23, 2014 11.39 AM To: Dennis Dixon, Rudy Esquivias; Jeff Robinson, John Suniga (john.suniga@sfmd.az.gov) Subject: Superstition Mountain Rotary Club Lost Dutchman Days special event I have received a special event liquor license application from Superstition Mountain Rotary Club for Lost Dutchman Days, February 27—March 1, 2015. Please have your department recommendations to me no later than Wednesday, January 7, in order for this to be on the January 20 agenda. Thanks. Al Elk VOTE ROLL CALL \\)c. NOTES' illabk ITEM# \\ MEETING OF \[}(4) 15 (60/1--/ at -&-) MOTION BY: SECONDED BY: YE NO ABSTAINED fRJSERDY N S EVANS v r '� WALDRON V 4S RIZZI C VI/ VICE N ARKER Q11,"= WILSON h SA CO UNANIMC IN FAVOR OPPOSED ABSTAINED TOTAL ,.... ITEM NO. 9 I MOVE THAT THE APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR SUPERSTITION MOUNTAIN ROTARY CLUB FOR FEBRUARY 27 -MARCH 1, 2015, SUBMITTED BY MICHAEL COWAN, BE RECOMMENDED (FOR APPROVAL) OR(FOR DENIAL)TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. elk PUBLIC HEARING 1. For CHAPTER 14 CABLE SYSTEMS MODIFICATIONS. 2. Will CITY ATTORNEY JOEL STERN speak to the Council9 3. Will the applicant or spokesperson please speak to the Council on this item? 4. Is there anyone from the public who wishes to speak on this item? (Are there any "Request to Speak" forms?) 5. If not, this hearing is closed. 6. Is there any discussion? 7. Call for a motion. 8. Call for a second. 9. Roll call vote. 11 �F~ City of Apache Junction, Arizona 300 E Superstition Boulevard r, Apache Junction,AZ 85119 � Agenda Item Cover Sheet Agenda Item No.10 File ID: 14-651 Sponsor Joel Stern Agenda Date 1/20/2015 Index. In Control. City Council Meeting Discussion on Apache Junction City Code, Vol 1, Chapter 14 Cable Systems Modifications No action required at this time Attachments City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 INTEROFFICE MEMO OFFICE OF THE CITY ATTORNEY TO: Honorable Mayor and DATE: January 12, 2015 Members of the City Council FROM: R. Joel Stern City Attorney SUBJECT: CITY CODE, CHAPTER 14, CABLE TV SYSTEMS; OUR FILE NO 15-001 Attached is a draft of the suggested modifications. Please note that there may be additional changes as I have not received input from all pertinent staff members as of the date of submittal for council agenda scheduling purposes. There are numerous clerical alterations as well as new language to reflect statutory amendments. In addition, changes are being made to reflect actual market conditions due to technological changes in the cable TV industry. The more significant changes are as follows: • § 14-1-3 Definitions: General cleanup, however the term "Gross Revenues" is amended to reflect federal law. In addition, definitions reflected in the CenturyLink proposal were added to address technological changes (e.g. "Living Unit", "Remote Terminal"). • § 14-1-5 and 14-1-6 Application Procedures & Standards for Approval: Currently, council is required to accept for filing any new cable TV system application and proposal. A second hearing is needed to actually consider the application and proposal. Language has been added to ease the procedure so that the application and proposal would be administratively accepted as filed with the city clerk and then the public hearing on the substantive merits would be scheduled. • § 14-1-7 License Agreement Required: This section currently requires that after council approves the application and proposal, the council would have only 15 days to negotiate and execute a license agreement with the vendor. If the 15 days is not met or extended, the process would have to start all over. The new language eliminates the 15 day restriction and in fact allows the council to adopt a license agreement at the same time it approves the application and proposal. • § 14-1-5 Operating Requirements: - Local Office (Sub § (A)(2)) The new provision allows the local office to be located within 15 miles from the city's western corporate boundary (Meridian Road). The current requirement is that the provider needs to have a local office situated within the city limits. - Construction Schedule (Sub § (A)(5)) The default provision is stricken since the industry standard has construction/expansion of a cable TV system triggering a renewal of the term in a license agreement. - Line Extension Policy (Sub § (C)(2)) The new language adds the industry standard of providing service to living units if within 4000 feet of the provider's nearest remote terminal (system hook-in location). - PEG Channels (Sub § G (2)) Due to state law changes, the requirement of public, educational, and government channel grant payments is not mandatory. Only two channels in basic tier and digital format are required. The law changed in 2008 so that if the city is requiring additional grant money to be donated to the city from the provider to enhance PEG use, the dollar amount can be a deduction to the 5% license fee payment. The added language removes any mandatory grant payments, however the PEG access channels are still required. This matter will be considered by the Mayor and City Council on January 20th and February 3rd 2015 when the public will have an opportunity to be heard. The substantive law should be adopted by reference with the actual provisions being declared a public record on file with the City Clerk's office to avoid publication costs. R. Joel Stern City Attorney 2 DRAFT 1-12-15 CHAPTER 14: CABLE TV SYSTEMS ARTICLE 14-1: CABLE TELEVISION Section 14-1-1 Title 14-1-2 Intent and purpose 14-1-3 Definitions 14-1-4 Authority to grant license, license required, non-exclusive license 14-1-5 Application procedures 14-1-6 Standards for granting or denying license applications 14-1-7 License agreement required 14-1-8 Operating requirements for cable systcros 14-1-9 Fees, bonds, letters of credit, liquidated damages and appeals 14-1-10 Termination and revocation 14-1-11 Renewal 14-1-12 Transfers and change of control 14-1-13 Indemnity and insurance 14-1-14 Administration 14-1-1 5 General provisions 14-1-16 Rights reserved to Council § 14-1-1 TITLE. This chapter shall be entitled the "City of Apache Junction Cable TV Systems" Chapter " § 14-1-2 INTENT AND PURPOSE. It is the intent of the city to promote the public health, safety and general welfare by providing for the grant of one or more licenses for the construction and operation of a cable TV system, to provide for the regulation of each cable TV system by the city, to provide for the payment of fees and other valuable consideration by a licensee to the city for the privilege of using the public rights-of-way for constructing and operating a cable TV system; to promote the widespread availability of cable TV service to city residents wherever economically feasible, including, but not limited to those who reside in multi-family buildings and in rural communities; to encourage 1 es the development of cable TV service as a means of communication between and among the members of the public and public institutions; and to encourage the provision of diverse information to the community over cable TV. § 14-1-3 DEFINITIONS. For purposes of this chapter, the following words, abbreviations and their derivations shall have the meanings given herein. Words not defined are given the meaning in § 602 of the Cable Act, 47 U.S.C. § 522, and, if none, their common and ordinary meaning When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The words MUST and SHALL are mandatory and the word MAY is permissive. ACCESS CHANNEL. Any channel set aside under the license agreement for public use, educational use or governmental use without a charge to the user by the licensee for channel usage An ACCESS CHANNEL may be scheduled or may be operated so that any member of the general public may cablecast ACTIVATED CHANNELS. Those channels engineered at the headend of a cable TV system for the provision of services generally available to residential subscribers of the cable TV system, regardless of whether those services actually are provided, including any channel designated for public, education or governmental use. ACTUAL COST. The actual cost to the licensee of materials and labor necessary to perform installation, construction or maintenance of facilities. AFFILIATE. Any person who owns or controls, is owned or controlled by, or is under common ownership or control with the licensee. APPLICANT. Any person that applies for a license APPLICATION. A proposal to construct and operate a cable TV system within the city,transfer a license, renew a license or modify a license An application includes the initial proposal plus all subsequent amendments or supplements to the proposal and relevant correspondence. BASIC CABLE SERVICE. Any service tier that includes the retransmission of local television broadcast signals CABLE ACT. The Cable Communications Policy Act of 1984, 47 U.S.0 §§ 521 et seq CABLE OPERATOR. Any person or group of persons that is issued a license by the licensing authority to construct, operate and maintain a cable TV system in the public rights-of-way (1)-i Tc blo 0 0 ablo sto nd d, ectl. th"ugia t, vu.,v o. more er f (2) Who otherwise c ntro1s o e bl ♦h 1. e.v.ent the ma ge,m,ent 2 oak AN. CABLE SERVICE. The transmission to subscribers of video programming or other programming service and subscriber interaction, if any, that is required for the selection or use of the video programming or other programming service The one way transmission to subscribers of video CABLE TV SYSTEM or SYSTEM. Any facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide -"k cable service that includes video programming and that is provided to multiple subscribers within a community Cable television system does not include. (1) A facility that serves fewer than fifty subscribers (2) A facility that serves subscribers without using any public right-of-way (3) A facility that serves only to retransmit the television signals of one or more television broadcast stations. (4) A facility of a common carrier that is subject, in whole or in part, to 47 United States Code sections 201 through 276, except that the facility is considered a cable TV system, other than for purposes of 47 Umted States Code section 541(c), to the extent the facility is used in the transmission of video programming directly to subscribers, unless the extent of the use is solely to provide interactive on-demand services (5)An open video system that complies with 47 United States Code section 573 (6)A facility of an electnc utility that is used solely for operating its electric utility system (1) A facility consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide cable service which ♦he term does ftet . elude broadcast stations- (b) A facility that serves subscribers without using any public rights of way, ( ) n f :lit. f ,.h.ch ,beet ,.hold t t . , --iii�ur , w uhri. Yivvi�ivii, s facility is used in the transmission of v , extent of the use is solely to provide interactive on demand services, (d) An open video system that complies with 47 U.S.C. § 573, or (2) The foregoing definition of cable system shall not be deemed to circumscribe or limit 3 CHANNEL. A time or frequency slot or technical equivalent on the cable TV system in a specified format, discretely identified and capable of carrying full motion color video and audio, and may include other non-video subcarriers and digital information. A 6 Megahertz (MHZ) frequency spectrum, which is suitable for carrying either 1 standard video signal, a number of ,d.e70 1J.a. .t i the .de „l5 mbinat. of s h, is CHANNEL EQUIVALENT. The system capacity required to provide the transmission of a video signal, with accompanying audio, that is in digital format and capable of producing sound and picture of NTSC quality or better, based on the compression technology then in use in the /\ cable TV system CITY. The City of Apache Junction, an Arizona municipal corporation (also referred to the ("LICENSING AUTHORITY') of the State of Arizona, in its present boundaries, and its future boundaries as increased or decreased by law CITY MANAGER. The chief executive officer of the city or his or her designee. COMPLAINT. A subscriber or citizen issue, presented in verbal or written form, to the licensee or the city relating to any regulatable aspect of the licensee's performance under this chapter. CONSUMER PRICE INDEX or CPI. The annual average of the Consumer Price Index for all Urban Consumers ("CPI-U"), as published by the Bureau of Labor Statistics. CONTROLLING INTEREST A business entity's operational authority, which is not limited to majority stock ownership, but also includes actual working and management(day-to-day) control in whatever manner exercised CONVERTER. A tuning device which converts transmitted signals to a frequency which permits their reception on a television set. COUNCIL. The Council of the City of Apache Junction DAY. Calendar day DWELLING UNIT. Any separate and distinct structure or part thereof which exists in finished form, occupied or capable of year-round occupation, and serves as a residence to one or more persons Included in this definition, but not limited to are all single family homes, each apartment unit, each condominium unit,patio homes, guest quarters and similar type structures. EASEMENT. Property interest which allows the erection, construction or maintenance of a cable TV system, its structures, equipment or facilities EXPANDED BASIC SERVICE. The next most highly penetrated tier of cable service programming above the Basic Service tier excluding premium or pay-per-view services FAIR MARKET VALUE. The price that a willing buyer would pay to a willing seller. FCC. The Federal Communications Commission. FEDERAL AGENCY. Any agency of the United States 4 GRADE B CONTOUR. The field strength of a television broadcast station computed in accordance. „tt, ulations p „lg ted by the FCC GROSS REVENUES. Amounts in whatever form and from all sources derived directly or indirectly by Licensee and/or an affiliate from the operation of licensee's cable system to provide cable services within a service area. GROSS REVENUES include, by way of illustration and not limitation. (1) Fees for cable services, regardless of whether such cable services are provided to .011 residential or commercial subscnbers, including revenues derived from the provision of all cable services (including but not limited to pay or premium cable services, digital cable services, pay- per-view,pay-per-event, audio channels and video-on-demand cable services), (2) Installation, disconnection, reconnection, downgrade, upgrade, maintenance, repair, or similar charges associated with subscriber cable service; (3) Fees paid to licensee for channels designated for commercial/leased access use, which shall be allocated on a pro rata basis using total cable service subscribers within the service area, (4) Converter, remote control, and other cable service equipment rentals, leases, or sales, (5) Payments for pre-paid cable services and/or equipment; (6) Advertising Revenues as defined herein, (7) Fees including, but not limited to. (1) late fees, convenience fees and administrative fees which shall be allocated on a pro rata basis using cable services revenue as a percentage of total Licensee revenues within the service area, (2) License fees, (3)the FCC User Fee and (4) Public, Education and Government("PEG") fees if included on subscriber billing statements, (8) Revenues from program guides; and (9) Commissions from home shopping channels and other cable service revenue sharing arrangements which shall be allocated on a pro rata basis using total cable service subscribers within the service area. (10) GROSS REVENUES shall not be net of• (1) any operating expense, (2) any accrual, including without limitation, any accrual for commissions to affiliates, or (3) any other expenditure, regardless of whether such expense, accrual, or expenditure reflects a cash payment. GROSS REVENUES, however, shall not be double counted. Revenues of both licensee and an affiliate that represent a transfer of funds between the licensee and the affiliate, and that would otherwise constitute GROSS REVENUES of both the licensee and the affiliate, shall be counted only once for purposes of determining GROSS REVENUES Similarly, operating expenses of the licensee which are payable from licensee's revenue to an affiliate and which may otherwise constitute revenue of the affiliate, shall not constitute additional GROSS REVENUES for the purpose of this license. GROSS REVENUES shall include amounts earned by affiliates only to the extent that licensee could, in concept, have earned such types of revenue in connection with the operation of licensee's cable TV system to provide cable services and recorded such types of 5 revenue in its books and records directly,but for the existence of affiliates GROSS REVENUES shall not include sales taxes imposed by law on subscnbers that the licensee is obligated to collect With the exception of recovered bad debt, GROSS REVENUES shall not include bad debt (a) "Advertising Revenues" shall mean amounts revenues denved from sales of advertising that are made available to licensee's cable system subscribers within the service area and shall be allocated on a pro rata basis using total cable service subscnbers reached by the advertising. Whenever licensee acts as the principal in advertising arrangements involving "ft. representation firms and/or advertising interconnects and/or other multichannel video providers, advertising revenues subject to license fees shall include the total amount from advertising that is sold, and not be reduced by any operating expenses (e g, "revenue offsets" and "contra expenses" and "administrative expenses" or similar expenses), or by fees, commissions, or other amounts paid to or retained by representation firms, other multichannel video providers, involved with sales of advertising on the cable system within the service area. (b) GROSS REVENUES shall not include (1)Actual cable services bad debt write-offs, except any portion which is subsequently collected which shall be allocated on a pro rata basis using cable services revenue as a percentage of total licensee revenues within the service area; (2) Any taxes and/or fees on services furnished by licensee imposed on subscribers by any municipality, state or other governmental unit, provided that the license fee, the FCC User fee and PEG fee shall not be regarded as such a tax or fee, (3) Launch fees and marketing co-op fees, and, (4) Revenues associated with the provision of managed network services provided under separate business contact (5) Unaffiliated third party advertising sales agency fees which are reflected as a deduction from revenues, except when licensee acts as a principle as specified in paragraph (A) oft. immediately above (c) To the extent revenues are derived by licensee for the provision of a discounted bundle of services which includes cable services and non-cable services, licensee shall calculate revenues to be included in GROSS REVENUES using a methodology that allocates revenue on a pro rata basis when comparing the bundled service pnce and its components to the sum of the published rate card prices for such components Except as required by specific federal, state or local law, it is expressly understood that equipment may be subject to inclusion in the bundled pnce at full rate card value This calculation shall be applied to every bundled service package containing cable service from which licensee denves revenues in the service area. The city reserves its nght to review and to challenge licensee's calculations Example. Prior to any bundle-related price reduction, if cable service is valued at 50% of the total of the services to be offered in a bundle, then cable service is to be valued and reported as being no less than 50% of the price of the bundled service total 6 Any and all revenues received, or in any way derived directly or indirectly by licensee, its 0 eable-serviees--GROSS-REVENUES-inelude3-by-waY-4-illffstfatioli-and-flet-limitatieffr monthly fees charged subscribers for any basic, optional, premium, per channel, per program service or , cable modem service fees resulting from the provision of data services; barter, revenues from REVENUES shall not :ne de , subsequently collected shall be included in gross revenues in the period collected, or (2) Any taxes on services furnished by the licensee which arc imposed directly on any licensee on behalf of the governmental unit A license fec is not such a tax. INSTALLATION. The connection of the cable TV system from a remote terminal to a subscriber's residence or place of business. INTERACTIVE ON-DEMAND SERVICES. A service providing video programming to subscribers over switched networks on an on-demand, point-to-point basis, but does not include services providing video programming prescheduled by the programming provider. eiN LABOR COSTS. Actual cost to licensee of contract labor or hourly wages or apportioned salaries of licensee's employees plus fully loaded labor costs LICENSE. An initial authorization, or renewal thereof(including a renewal of an authorization which has been granted subject to Title 47 U S C. § 546), issued by a licensing authority, whether such authorization is designated as a franchise, permit, resolution, contract, certificate, agreement or otherwise, which authorizes the construction or operation of a cable TV system LICENSE AGREEMENT. A contract entered into in accordance with the provisions of this chapter between the city and a licensee that sets forth the terms and conditions under which the license will be exercised. LICENSE AREA. The entire existing territorial limits of the city and any area annexed thereto during the term of the license 7 LICENSEE. Any person who has been granted a license by the city or any lawful transferee or successor interest. LICENSE FEE. As defined in Title VI of the Federal Communications Act of 1934, 47 U.S.C. § 542, as amended LICENSING AUTHORITY. The City of Apache Junction. LIVING UNIT. A distinct address in the network inventory system where the cable operator currently has, had in the past, or had planned to provide telephone or high-speed internet service to a customer This includes, but is not limited to, single family homes, multi-dwelling(e g, apartment buildings and condominiums) units and business locations MATERIAL COSTS. Actual cost of material to licensee, including sales tax and freight paid, plus handling and processing charges equal to 3%of material costs. MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR. A person such as, but not limited to, a cable operator, a multichannel multipoint distribution service, a direct broadcast satellite service or a television receive-only satellite program distributor, who makes available for purchase, by subscribers or customers, multiple channels of video programming NORMAL BUSINESS HOURS. Those hours during which most similar businesses in the community are open to serve customers In all cases, NORMAL BUSINESS HOURS must include some evening hours at least 1 night per week and/or some weekend hours. NORMAL OPERATING CONDITIONS. Those service conditions which are within the control of the cable operator Those conditions which are not within the control of the cable operator include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages and severe or unusual weather conditions Those conditions which are within the control of the cable operator include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance, upgrade or rebuild of the cable TV system. OTHER PROGRAMMING SERVICE. Information that a cable operator makes available to all subscribers generally PERSON. My individual, corporation, partnership, association,joint venture or orgamzation of any kind and the lawful trustee, successor, assignee,transferee or personal representative thereof. PUBLIC RIGHTS-OF-WAY. The surface, the air space above the surface, and the area below the surface of any public street, highway, lane, path, alley, sidewalk, boulevard, drive, bridge, tunnel, park, parkway, waterway, public utility easement or similar property now or hereafter held by withia the city, which, consistent with the purposes for which it was dedicated, may be used for the purpose of installing and maintaining the cable TV system. No reference herein to a PUBLIC RIGHTS-OF-WAY shall be deemed to be a representation or guarantee by the city that its interest or other right to control the use of the property is sufficient to permit its use for those purposes, and a licensee shall be deemed to gain only those rights to use as are properly in the city and as the city may have the right and power to give PUBLIC RIGHTS—0E-WAY, for the 8 purpose of this chapter, do not include buildings, parks, poles, or similar facilities, or property owned by or leased to the city, including by way of example and not limitation, structures in the PUBLIC RIGHTS-OF-WAY, such as utility poles and light poles REMOTE TERMINAL. A "Digital Subscriber Line Access Multiplexer" ("DSLAM") capable of offering cable TV services to subscribers. SCHOOL. Any public educational institution, which is accredited by a nationally recognized institution, including primary and secondary schools, colleges and universities. SERVICE INTERRUPTION. The loss of picture or sound on one or more cable channels or channel equivalents SERVICE TIER. A category of cable service or other services provided by a cable operator and for which a separate rate is charged by the cable operator STANDARD DROP. That cable connection which requires no more than 150-foot drop measured from the ground block on the subscriber's home or place of business to the nearest active tap on the cable TV system, (which cannot be more than 4000 feet from a Remote Terminal) involving only 1 outlet and standard materials and does not involve a wallfish In addition, a STANDARD DROP shall exclude custom installation work including specific subscriber requested work that requires nonstandard inventory or cable routing that requires construction methods exceeding reasonable underground or aenal work STATE. Any state or political subdivision, or agency thereof. STREET. The surface, the air space above the surface and the arm below the surface of any SUBSCRIBER. Any individual or entity legally receiving, for any purpose, cable services of the /, licensee's cable TV system including, but not limited to, the basic service, redistribution of television broadcast signals, radio signals, licensee's onginal cable casting, community programming, government and education access channels and other services such as leased channels, data and facsimile distribution, premium and pay-per-view channels and police, fire and similar public service communication SYSTEM OUTAGE. A service interruption affecting more than 10 subscribers SYSTEM REBUILD or REBUILD. A major improvement or enhancement in the technology or service capabilities made by the licensee to the cable TV system TWO-WAY CAPABILITY. The incorporation m a cable TV system of all appropriate design and engineenng characteristics so that 2-way transmission, including addressability, over the system can be implemented with a minimum of expense. The 2-way capability specifically includes, but is not limited to, services for Internet access and pay-per-view as well as emerging technologies. 9 USABLE ACTIVATED CHANNELS. Activated channels of a cable TV system, except those channels whose use for the distribution of broadcast signals would conflict with technical and safety regulations as determined by the FCC VIDEO PROGRAMMING. Programming provided by, or generally considered comparable to programming provided by, a television broadcast station § 14-1-4 AUTHORITY TO GRANT LICENSE; LICENSE REQUIRED; NON- EXCLUSIVE LICENSE. (A) Pursuant to A R S § 9-505, as—amend et seq, and as amended, the council has the authority to issue non-exclusive licenses to construct, install, maintain and operate cable eemmunfeation TV systems within the city, and to regulate those cable operations The council's authority is also based in common law pursuant to the city's ownership of the fee simple title to the streets public rights-of-way of the city as well as its legal interest in easements and licenses granted to it by property owners for the purposes of municipal use. (B) No provision of this chapter shall be deemed or construed to require the granting of a license. (C) No person shall construct, install or maintain a cable TV system within any—street the public rights-of-way in the city, or within any other public property of the city, unless a license agreement authorizing such use of the streets public rights-of-way or property is in full force and effect. (D) All licenses issued by the council shall be non-exclusive, and the council specifically reserves the right to grant such additional licenses for cable TV systems as the council deems appropriate. (E) Any terms and conditions of agreements between licensee and other entities or municipalities shall not effect any of the terms and conditions including but not limited to the rates, services and work schedules, set forth in a license agreement negotiated between the city and licensee (F) A license shall not relieve the licensee of any obligation to obtain and comply with any necessary permit or other forms of authorization required by the city code or other applicable laws and regulations and shall not convey rights other than as specified in this Chapter 14, or in the license agreement; no rights shall pass by implication (G) Any license shall authorize the licensee to engage in the business of operating a cable TV system and providing cable service in the City, and may authorize non-cable service in the City to the extent not prohibited by state and federal law, and to erect, install, construct, prepare, replace, reconstruct, maintain and keep in any public rights-of-way such poles, wire, cable, conductors, ducts, conduit, vaults, manholes, amplifiers, appliances, attachments and other facilities as may be necessary and appurtenant to the cable TV system. In addition, any license shall authorize the licensee to use and operate such facilities rented or leased from other persons, 10 including but not limited to any public utility or other licensee holding a valid license or permitted to do business in the city, provided, however,that. (1) the safety, functioning, and appearance of the public rights-of-way and the safety of other persons shall not be adversely affected by the installation, construction, operation or removal of such facilities necessary for a cable TV system, and (2) the cost of the installation, construction, operation or removal of such facilities shall be oak borne by the licensee. (H) Nothing in this Chapter 14 shall relieve the licensee of any obligation to obtain any authorizations or licenses from the city to use the public rights-of-way to provide non-cable service, or to comply with any city rules, regulations and standards with respect to the use of the public rights-of-way for the provision of such non-cable service The provisions of this chapter 14 are not a bar to the imposition of similar, different or additional city imposed rules, regulations and standards with respect to the use of the public rights-of-way in connection with the provision of non-cable service In addition to other rights it has, the city may establish such rules, regulations and standards related to the provision of such non-cable service, to the extent not prohibited by state and federal law, as required to protect the public interest. § 14-1-5 APPLICATION PROCEDURES. (A) Any person desiring to construct, install, maintain or operate a cable communication TV system within the city who is not lawfully the holder of a license to provide cable service in the city as of the effective date of this chapter shall submit an application to the council addressed to and filed with the city clerk This application shall consist of a letter and proposed license agreement All applications and proposals filed with the city clerk shall remain the property of the city and shall constitute a public record pursuant to state law The council reserves the right to issue a request for proposals for cable TV system services at any time Applications submitted pursuant to a request for proposals may be returned as non-responsive if they do not comply with all requirements of the request. (B) Applications for consent to transfer a license or an interest in a license must conform to the requirements of Vol. I, § 14-1-12, while applications for renewal, must conform to Vol I, § 14-1-11 (C) An application for modification of a license agreement must at a minimum, include the following information (1) The specific modification requested, 11 (2) The justification for the requested modification, including the impact of the requested modification on subscribers and others, and the impact on the applicant if the modification is not approved, (3) A statement as to whether the modification sought is pursuant to 47 U.S.C. § 545, and, if so, a demonstration that the requested modification meets the legal standards of that section, and (4) Any other information necessary for the council to make a determination. (D) To be acceptable for filing, an application must be submitted with any required filing fee, be properly executed on the forms prescnbed by the council, and contain the information required by any required application form, this chapter and meet the requirements of any applicable request for proposals § 14-1-6 STANDARDS FOR GRANTING OR DENYING LICENSE APPLICATIONS. (A) All applications and proposals received that are acceptable for filing shall be placed in a public file with the city clerk The council shall publish notice of a public hearing date when the council will consider an of each application and the proposal in a newspaper of general circulation within the proposed service area once a week for 2 two consecutive weeks, the first notice being published at least fourteen (14) days before the public hearing takes place The notice shall indicate the following. (1) The proposed service or changes in service (2) Proposed changes in ownership (3) Where the application may be viewed, in person or online (1) The due date for submission of any written comments, and (40) The date and location of a the public hearing (B) Notice of the hearing shall be published and held in accordance with the provision of eN A R S § 9-507(B) All interested parties shall be afforded a reasonable opportunity to be heard. (C) The council shall give full consideration to each application and proposal. The following factors may be deemed appropriate and shall be considered. (1) The financial qualifications of the applicant and its ability to construct and operate the proposed system (2) The need for and quality of the service proposed, including rates to subscribers, whether or not rates are to be regulated (3) The technical, legal and character qualifications of the applicant, including applicant's willingness to abide by the limitations of this chapter 12 (4) Technical and performance adequacy of the proposed system design, plant and equipment, including any specific knowledge or experience the Council may have with the applicant (5) Where an applicant proposes to overbuild an existing cable system, the economic and technical feasibility of multiple cable TV systems, the impact on the existing licensee's system and the public interest if the application were to be granted (6) All other factors which may affect the public interest (Prior Code, § 14 1 6) § 14-1-7 LICENSE AGREEMENT REQUIRED. (A) U ., the ., a of a plic.,tion by the Counc,1 the „licant shall n t.ate and � terms of a license agreement within 15 days from the date that the Council approves the be extended by the Council only upon a majority vote of the Council If council approves the application and proposal, the terms shall be set forth in a written license agreement which shall also be considered at the same public hearing The license agreement shall incorporate all terms and provisions of this chapter wherein a requirement is placed upon the licensee, either The licensee shall expressly and specifically agree to accept and be bound by the terms of this chapter (B) A license agreement shall have the minimum following characteristics, but the city and licensee may negotiate additional terms and conditions consistent with Vol I, § 14-1-4, state and federal law. (1) It authorizes use of the public rights-of-way for installing cables, wires, lines and other facilities to operate a cable TV system, but does not expressly or implicitly authorize the licensee to provide service to, or install cable, wires, lines or any other equipment or facilities upon property without owner consent (except for compatible easements or rights-of-way pursuant to 47 U.S.C. § 541(a)(2)), or to use publicly or privately owned utility poles or conduits without a separate agreement with the owners. It also authorizes the licensee to so use, operate and provide similar facilities or properties rented, licensed or leased from other persons, firms or corporations, including but not limited to, any public utility or other licensee licensed or permitted to do business in the city; provided, however, that neither the licensee nor the third party shall be relieved of any regulation or obligation as to its use of the facilities in the public nghts-of-way streets (2) It is subject to the paramount right of use of the public rights-of-way by the council and the public for public purposes The council reserves the right to authorize use of public rights-of-way to other persons as it determines appropriate 13 (3) It is nonexclusive and will not expressly or implicitly preclude the issuance of other licenses to operate cable systems within the city (4) It conveys no property right to the licensee or right to renewal other than as may be required by state or federal law-, and the agreement is not a franchise (5) It constitutes a legally binding contract between the licensee and the city once it is approved by the Council and executed by both parties A licensee contractually commits itself to comply with the terms, conditions and provisions of the license agreement and with all em applicable laws, ordinances, codes, rules, regulations and orders (6) In no case shall the term of any license agreement exceed 15 years commencing on its effective date. A greater period of time is prohibited. (7) A licensee shall execute a hold harmless agreement as part of the license agreement which shall set forth the obligation of the licensee over and above the insurance requirements contained in the license and this chapter (8) A licensee shall be subject to all laws, rules and regulations of the State of Arizona and the United States Government. (9) Any of the provisions of this chapter may be amended by the council at any time. This chapter and the amended provisions shall be applicable to all existing license agreements; provided, however, that this chapter and the amended provisions shall not be applicable to an existing agreement where it would contravene a contractual right of the licensee under the license agreement. (10) All notices and communications from a licensee to the council pursuant to this chapter or a license agreement shall be sent to the city manager unless the licensee is otherwise directed (11) Insofar as it is not inconsistent with or otherwise preempted by federal or state regulations, the license agreement shall grant the right and privilege to the licensee to provide non-cable communications services Insofar as it is not inconsistent with or otherwise preempted by federal or state regulations, the council shall retain all authority to regulate non-cable telecommunication services to the extent necessary to protect the public interest and to ensure compliance with all provisions of this chapter § 14-1-8 OPERATING REQUIREMENTS . A licensee shall conform to the following minimum standards relative to the construction, operation and maintenance of a cable TV system in the city. It is not the intent of this article to prevent any licensee from providing more than the required minimum to meet the standards listed below (A) Rights of individuals, subscribers and users (1) A cable TV system shall be operated in a manner consistent with the principles of fairness and equal accessibility of facilities, channels, studios and other services to all residents 14 and other entities having a legitimate use of the system A licensee shall not discnminate in terms of rates, terms of service or extension of service on the basis of age, race, creed, sex, religion, national origin or marital status Nor shall a licensee fail to extend service to any part of the city on the basis of the income of the residents. This provision shall not restnct licensee's ability to provide senior citizen,or other similar discounts, or seasonal service (2) A licensee shall maintain a business office open during normal business hours with listed local or toll-free telephone numbers to allow reasonable access by subscnbers and members of the public. The office shall be conveniently and centrally located but shall be no further than within fifteen (15) miles from Meridian Road where such road marks the city's western boundary . When the office is closed, an answering machine or service similar device, capable of receiving service complaints and inquiries must be employed The office shall be open to the public between the hours of 9.00 a.m to 5 00 p m Mondays through Fridays, and 9.00 a.m. to 12.00 noon on Saturdays, during such hours licensee will provide staff to field all subscriber questions, complaints, billing procedures and exchange of converter boxes. (3) Licensee shall maintain a written record listing date of all complaints, identifying the subscriber or citizen, describing the nature of the complaint and when and what action has been taken by the licensee, if any, in response thereto;. Such record shall be kept at the licensee's office: and, subject to subscriber privacy laws, shall be available for inspection dunng feguler normal business hours without further notice of demand of the city manager A summary of such records must be retained for not less than 1 year The licensee shall notify each subscriber at the time of initial subscription of the procedure to for reporting and resolving complaints (4) A licensee shall establish procedures for the investigation and resolution of all complaints including, but not limited to, those regarding the quality of service and equipment malfunction. A copy of such procedures shall be provided to the city manager and/or council upon request (5) A licensee must provide each subscriber at the time cable service is installed, the following. (a) Written instructions for placing a service call, filing a complaint or requesting an adjustment, including the phone number and address of licensee's office (b) The telephone number of the city office responsible for administration of the cable license (c) A schedule of rates and charges for all available services (d) Copies of the service contract, including disconnect and reconnect procedures and charges (e) A subscriber handbook and upon request any other written policies applicable to subscribers 15 (6) A licensee shall establish and conform to the following policy regarding refunds to subscribers and users. (a) If the licensee collects a deposit or advance charge on any service or equipment requested by a subscriber or user,the licensee shall provide such service or equipment within 30 days of the collection of the deposit or charge or it shall refund the deposit or charge within 5 days thereafter upon request of the subscriber The subscriber must be advised of this right of refund at the time the order is placed, and (b) If any subscriber or user terminates any monthly service during a period of time for which the subscriber or user has made an annual or other payment in advance, the appropriate pro rata portion of the payment shall be refunded by the licensee. (7) The following requirements shall apply to disconnections. (a) There shall be no charge for total disconnection of cable service unless the charge was disclosed at the time the subscriber ordered service All cable communications equipment shall be removed within a reasonable time from a subscriber's property at the subscriber's request, such time not to exceed 30 days from the date of the request; and (b) If any subscriber fails to pay a properly due monthly subscriber's fee or other charge, the licensee may disconnect the subscriber's service outlet; provided, however, that the disconnection shall not be effected until 30 days after the due date of the charges and shall include a prior written notice to the subscriber of the intent to disconnect After disconnection, upon payment in full of all proper charges or fees, including the payment of any reconnection charge, the licensee shall promptly reinstate the service The licensee may require a 60 day prepayment of services as a condition to reconnection. (8) Other than testing of the EAS system, a licensee may interrupt service on the cable TV system only for good cause and for the shortest time possible No prior notice shall be required for the performance of system maintenance work requiring a maximum of 1 hour between the hours of 2.00 a m and 6.00 a m (9) A licensee shall at all times comply with subscriber privacy provisions of 47 U S C § 551 (10) No equipment shall be installed by the licensee for subscriber service without first securing a service request from the owner or resident of any private property involved, except in public utility easements. (11) A licensee shall not originate or knowingly permit subliminal transmission at any time for any purpose whatsoever (12) A licensee shall make available leased access channels as required under 47 U.S.C. § 532. 16 elk (13) A licensee shall strictly adhere to the equal employment opportunity requirements of the FCC, 47 U.S.C. § 554, state statutes and local regulations, and as the same may be amended from time to time. (B) Cable system construction timetable (1) A cable system shall be constructed in accordance with the provision of the license agreement ON (2) It is the policy of the council to require construction of a cable system designed to serve subscribers in an area licensed by the council as rapidly and expeditiously as possible. The licensee shall immediately upon granting of the license agreement diligently pursue and obtain all necessary permits from the appropnate governmental agencies, utility companies and others as necessary to comply with the provision of this chapter and other federal, state and city laws, codes and resolutions. Licensee shall comply with the City of Apache Junction Engineering G-u ideli ice-s-(O ee Ne 932) arndrAticle4-3 3 of Volume II of the_ pache unction, Gi j Code (3) A cable system shall be constructed pursuant t nstruct.on timetable eci ea ; (^) ^ny delay beyond the terms of tb timetable ecified in the license agreement may be considered a violation of the terms of this chapter and the license agreement Unless the (5) The licensee shall not be considered in default of the applicable construction schedule if the City Manager approves a modification of the sehedule-ehange-m-advanEe--In reasons for the delay, in writing. The delay must be disapproved by the City Manager if the which the est . s file L (3) The city manager may require a licensee to report on construction progress and provide information showing specifically whether the construction schedule is being met and the reasons for the delay. The city manager shall determine the format to be used for the report and the frequency of reporting (4) Where appropnate and reasonable, a licensee shall schedule construction activities to coordinate with any city construction on streets so as to avoid unnecessary inconvenience to the public (C) Line extension policy Unless the license agreement provides otherwise, a licensee shall be required to extend its cable TV system pursuant to the following requirements. 17 (1) Upon reasonable request for service by any person located within any area of the city that meets density requirements of division (C)(2) below, the licensee shall, within 30 days, furnish the requested service to such person, unless prevented from providing the service due to factors outside licensee's control, such as permit restrictions, private easement considerations and the like If the service has not been implemented within 60 days of the request, the city manager may impose liquidated damages for each day thereafter (2) The licensee must extend and make cable service available to every unserved living slwellifig unit within 4,000 feet of a licensee's remote terminal or any area of the city reaching the minimum density of at least 25 dwelling units per mile of plant as measured from licensee's nearest activated feeder line, whether the existing plant is aerial or underground, except that the licensee shall not be required to install cable where another authorized licensee has already done so Licensee shall complete line extensions to an area reaching a density of at lest 5 homes 1 home per 211 street feet including the distance to existing active cable plant Upon request, this a significant adverse impact on the capital costs of licensee's City of Apache Junction cable Gystem (3) The licensee shall prevent unnecessary damage to streets and property by installing underground cable or conduit in all new subdivisions of 5 or more dwelling units within the license area at the same time, in the same trench as telephone, electric or similar services are installed established-fer-line-extensiefis. (4) In new residential developments in which all the electric power and telephone utilities are underground, the city may, in its sole discretion, require that the following procedure apply with respect to access to and utilization of underground easements. (a) The developer shall be responsible for contacting and surveying all licensees to ascertain which licensees desire (or, pursuant to the terms and provisions of this chapter and any license agreement, may be required) to provide cable service to that development. The developer may establish a reasonable deadline to receive responses from licensees The final development map shall indicate the licensees which have agreed to serve the development. (b) If 1 or more licensees wish to provide service within all or part of the development, they shall be accommodated in the joint utilities trench on a nondiscriminatory shared basis. If fewer than 2 licensees indicate interest, the developer shall provide conduit to accommodate a minimum of 2 sets of cable television cables and dedicate to the city any initially unoccupied conduit. The developer shall be entitled to recover the cost of the initially e- (c) The developer shall provide at least 10 business days notice of the date that utility trenches will be open to the licensees that have agreed to serve the development. When the 18 trenches are open, such licensees shall have 2 business days to begin the installation of their cables, and 5 business days after begmmng installation to complete installation (d) The final development map shall not be approved until the developer submits evidence that 1 It has notified each licensee that underground utility trenches are to open as of an estimated date, and that each licensee will be allowed access to such trenches, including ^ trenches from proposed streets to individual homes or home sites, on specified nondiscriminatory terms and conditions, and 2. It has received a written notification from each licensee that the licensee intends to install its facilities during the open trench period on the specified terms and conditions, or such other terms and conditions as are mutually agreeable to the developer and licensee, or has received no reply from a licensee within 10 days after its notification to such licensee, in which case the licensee will be deemed to have waived its opportunity to install facilities during the open trench period (e) Sharing the joint utilities trench shall be subject to compliance with state regulatory agency and utility standards. If the compliance is not possible, the developer shall provide a separate trench for the cable television cables, with the entire cost shared among the participating licensee(s) With the concurrence of the developer, the affected utilities and the licensee's alternative installation procedures, such as the use of deeper trenches, may be utilized, subject to the requirements of applicable laws. (f) Any licensee wishing to serve an area where the trenches have been closed shall be responsible for its own trenching and associated costs and shall repair all property to the condition which existed prior to such trenching. (5) The licensee must extend and make cable service available to any resident requesting connection within the licensee's authorized license area at the regular installation ^ charge if-the-emneetten-te4he-resident-vieuld-requife-fte-mere-than-a-4-5.0-feet-dr-ep-kneatid provided that division(C)(2) above is met. (6) W th t too ests f r , ect on v 1{.�.,a drop lire o o of i 50 f e+ the licensee must extend service to such residents * e time charge not to o eed the actual costs incurred by the licensee for the distance exceeding 150 feet. Licensee may collect the installation charge in advance, however, no more than 30 days in advance of anticipated construction (D) Construction and technical standards The following general requirements, which are not to be interpreted as imposing standards in excess of FCC imposed limits, apply to all licensees. (1) In those areas and portions of the license area where the transmission and distribution facilities of the telephone company and the electric company are underground or later placed underground, the licensee shall likewise install its transmission facilities underground 19 fr (2) In areas where facilities do not have to be underground, a licensee shall not erect any new poles along any street or public rights-of-way of the city except as may be reasonably required or necessary to fill small gaps in the existing aerial utility systems and only then with the advance approval of the city manager. (3) All television signals transmitted on a cable TV system must include any closed captioning information for the hearing impaired Antennas, supporting structures and outside plant used in the system must be designed to comply with the recommendations of the Electronics Industries Association and applicable federal and local regulations on tower structures and outside plant. (4) The licensee must perform at its expense any proof of performance tests designed to demonstrate compliance with the requirements of this chapter, the license agreement and the FCC. The city manager may require periodic proof of performance tests to be performed at the expense of the licensee. Upon request, the licensee must provide the test results promptly to the city manager (5) The licensee must advise the city manager a minimum of 30 days in advance when a proof of performance test pursuant to 47 C.F.R. 76.605(a)(4) (or subsequently renumbered) is scheduled The licensee must also advise the city manager of its anticipated schedule for any other FCC required testing a minimum of 30 days in advance of the testing (6) A licensee must not design, install or operate its facilities in a manner that will interfere with the signals of any FCC licensed service, including but not limited to television, radio, satellite, 2-way and paging services, the electrical or telephone system located in any portion of the city, the cable TV system of another licensee, or individual or master antennas used for receiving amateur radio television,radio or other FCC authorized signals (7) A licensee must obtain a-transaction privilege tax license to conduct business in the corporate limits of the city. In adthhen, licensee shall notify the city clerk of any and all licensed in h the State of Arizona and shall also obtain a transaction privilege tax license to for•naependent ntractor and subcontractors (7) (4) The system shall meet or exceed FCC requirements as set forth in 47 C F R 76(K). If federal law is subsequently amended or minimum technical specifications are no longer mandated by the FCC, the technical specifications in effect at the time of adoption of the license agreement shall govern. (E) Maintenance specifications. (1) The licensee shall construct, install and maintain its cable TV system in an orderly and workmanlike manner. The safety of the general public, the licensee's employees, the employees of the utility companies and all nearby property owners shall be a primary concern. 20 Aok (2) All cables are to be installed, to the maximum extent possible, parallel with electric and telephone distribution facilities. Licensee's multiple-cable configurations shall be arranged in parallel and bundled to the maximum extent possible (3) As between licensee and the city, the licensee shall be solely and completely responsible for the actions taken by any contractor or other agent employed to construct or install the licensee's facilities en within the public rights-of-way streets as well as on other public or private property (4) A licensee shall have available at all hours personnel capable of responding to emergency conditions requiring immediate repair to its cable facilities The licensee shall be a member of the Blue Stake Center, or otherwise comply with state underground law, for its service area (5) In the event that licensee property or the facilities and equipment of unauthorized cable communication providers has been installed in a street or then dedicated public rights-of- way without complying with the requirements of this chapter, or the license has been terminated, revoked or expired, or the use of any licensee property is discontinued for any reason for a continuous period of 2 months, licensee or any unauthorized cable communication provider, shall at its sole expense on the demand of the city manager remove promptly from the public rights-of-way streets all licensee or unauthorized cable communication provider property other than that which the city manager may permit to be abandoned in place absent any rights licensee has under state and federal law. Upon such removal of subject property, licensee or unauthorized cable communication provider shall promptly restore the public rights-of-way streets or other public places from which the subject property was removed to a condition as near as possible to its prior condition Subject property no longer in service may be left in place with the approval of and in a manner prescribed by the city manager Upon abandonment of the property in place, licensee or unauthorized cable communication provider shall deliver to the city manager an instrument transferring ownership of the subject abandoned property to the city Any cost arising from compliance with this provision shall be borne by the licensee or unauthorized cable eIN communication provider (F) Use of public rights-of-way thtrees (1) A licensee must utilize, with the owner's permission, existing poles, conduits or such other facilities whenever possible (2) All transmission lines and other equipment must be installed and located to minimize interference with the rights and reasonable convenience of public and private property owners The council reserves the right to issue the reasonable rules and regulations concerning the installation and maintenance of cable TV systems in the public rights-of-way, as may be consistent with this chapter, state and federal law In addition, licensee shall become a member of the Blue Stake Center, or its functional equivalent, within 30 days following the effective date of this agreement. 21 (3) The licensee shall have at all times up-to-date route maps showing trunk and distnbution lines. Licensee shall make all such maps available for review by the appropriate city personnel and shall be provided on at least a yearly basis. Licensee shall, in addition to the paper maps, also provide the city with updated maps in a suitable electronic format determined by the city at least every 3 months if changes to the plant cable TV system have occurred during the 3- month period (4) All construction practices shall be in accordance with all applicable sections of the Occupational Safety and Health Act of 1970, 29 U.S.C. §§ 651 et seq., as amended, as well as other applicable laws. (5) A licensee must remove, replace or modify at its own expense, any of its facilities within any public rights-of-way or any federally patented easement when required to do so by the city manager to allow the city to change, maintain, repair, improve or eliminate a public thoroughfare Nothing in this article shall prevent licensee from seeking and obtaining reimbursement from sources other than the city (6) On streets In public rights-of-way where electrical and telephone utility wiring are located underground, either at the time of initial construction or subsequently, the cable must also be located underground at the licensee's expense. Between the public right-of-way a street or feed and subscriber's residence, the cable must be located underground if both electrical and telephone utility wiring are located underground. If either electric or telephone are aerial, licensee may install aerial cable except where a property owner requests underground installation at the sole cost of the licensee. (7) A licensee must obtain any required permits before doing any excavation or causing disturbance to public thoroughfares or private property as a result of its construction or operations and must restore to their former condition such private property and public thoroughfares, the latter in a manner consistent with all applicable rules, regulations and resolutions relative to construction, repair or maintenance in public nghts-of-way. If such restoration is not satisfactorily performed within a reasonable time in the opinion of the city manager,the city manager may, after prior notice to licensee, cause the repairs to be made at the expense of the licensee. The city manager may inspect ongoing construction and require a licensee to halt construction where the city manager finds the construction to be in non- compliance with the requirements of this chapter,the license agreement or a permit (8) Prior to commencement of underground construction, a licensee must have complied with the following requirements. (a) Have received a permit from the city curl for construction on public property or public rights-of-way; and (b) Have complied with Blue Stake requirements in the area of construction, (9) The licensee shall have the authority to trim trccs, in accordance with all applicable rights of way of the license area s 22 the activities At the option of the city, the trimming may be done by it or under its direct a cable or other line (10) At the request of any person holding a valid building moving permit and upon sufficient notice, the licensee must temporarily raise, lower or cut its wires as necessary to /', facilitate such move upon not less than 72 hours advance notice The direct expense of the temporary move must be paid by the permit holder, and the licensee may require payment in advance (G) System services and capability. (1) The following minimum requirements for facilities and services apply to licenses The council may require that a licensee exceed these minimum requirements. (a) Except as provided in a negotiated license agreement, a cable TV system must have a minimum analog capacity of 82 video channels available for immediate or potential use Two-way capability shall be designed into the system Upon request, this minimum channel capacity may be modified by the council, provided the licensee demonstrates that it would be commercially impracticable to comply with the requirement A licensee shall have the burden of demonstrating, by clear and convincing evidence, that compliance with the minimum channel capacity would be commercially impracticable for its Apache Junction cable TV system (b) Standard installation and basic service to public buildings may be required without charge as set forth in the license agreement Licensee may be required to make available, 1 service outlet to a conveniently accessible point in each , city building hall or other facility or building located within the license area and used for public purposes as may be designated by the city manager The installation charge to each occupant, if any, would not exceed licensee's direct cost (time and material). Ther-e-may-alse-be-a-miniffitim /IN monthly service charge at the above locations (c) A licensee must design its system to allow the city manager to interrupt audio portions of the cable service in an emergency to deliver information to subscribers (d) A licensee must provide standby power for the headend so as to be able to operate some channels during a power outage for a minimum of 48 hours or as provided for in the license agreement. (2) The following requirements apply to PEG access channels. (a) PEG channel capacity shall be made available to city and its designated PEG providers without charge within one hundred eighty (180) days after Licensee begins offering cable service in the city, licensee will provide the city with up to two (2)public, educational, and governmental access channels ("PEG channels") as determined in the city's sole discretion. The two PEG channels shall be on the basic cable service tier of the system and two other channels of non-commercial government programming, at least one of which may be programmed by the 23 federal government in the digital programming tier of the system, as provided for in A.R.S. § 9- 506(D)(1) Channels shall be reserved for this capacity with a logo approved by the city All costs associated with the obligations in this section to commence PEG signals at the point of origination back to the headend and transmitted to subscribers with the same quality, functionality and identification as other channels on the system, shall be borne by licensee Except as provided in this chapter Licensee shall have no responsibility for the management, operation or administration of PEG channels and shall have no editorial control pursuant to A.R.S. § 9-506(D)(1). Applications for a license shall include proposals for the provision of educational and governmental access channel sufficient to meet community needs during the term of the license as determined by the Council. A licensee or applicant shall specify what grants, if any, it is willing to make fer studio equipment and facilities to be used for local (b) PEG channels located on the basic cable service tier shall be grouped together and located on the system in reasonable proximity to other commercial video channels on the system. Licensee will deliver the PEG channels to subscribers at the same visual and audio quality, same functionality and at the same bit rate as licensee delivers the primary signal of local television network broadcast stations on its cable TV system ("Network TV"), such that the PEG channels are indistinguishable from Network TV in video and audio quality and functionality Should licensee convert the basic cable service tier to digital format, subscribers must be able to continue to receive PEG channels free of charge except for the standard rate applicable for the basic cable service tier. PEG channels must be receivable by subscribers without special expense, other than the expense required to receive basic cable service or digital service, as applicable Licensee must maintain PEG channels consistent with FCC technical standards If no FCC standards for PEG channels exist, licensee must maintain PEG channels using FCC technical standards for local over-the-air television channels The city recognizes that licensee is unable to improve the technical quality of PEG channels but licensee must not degrade the technical quality once it is received by licensee Licensee agrees not to encrypt PEG channels any differently than other commercial channels available on the system unless the city and licensee mutually agree in writing to a non-traditional format that is not similar to those of broadcast channels (c) Upon 180 day advance wntten notice to licensee, the city shall have the right to require that licensee carry one (1) of the PEG channels in both SD and HD format consistent with the manner and tier placement in which licensee delivers the primary signal of Network TV City shall have the sole discretion to determine which of its PEG channels migrate to HD without the addition of mandates or content restrictions. HD resolution will be the same resolution used in licensee's HD tier, such that the PEG HD channels are indistinguishable from Network TV in video and audio quality and functionality. Licensee will continue to carry the city PEG channels in SD format in addition to HD format as long as there are SD channels in licensee's basic channel lineup. (d) Licensee must permit the city to operate a production studio (the "Studio") located in city buildings at a site determined by the city. Licensee, at its sole cost, will design build and 24 maintain all PEG upstream feeds, connections and distribution facilities between its video channel aggregation point and the Studio in a manner so that no degradation in signal quality or content as originated by city shall occur Licensee must furnish a new state-of-the-art digital fiber optic transmission system consisting of transmitters and receivers Transmitters and receivers must be of the type consistent and compatible with current industry standards for the application of continuous conversion of broadcast quality audio and video to date for transport over fiber optic cable Licensee must interconnect at its sole cost the Studio to the headend or other main distribution point of the system for distribution of the programming of the PEG channels with the above-mentioned fiber optic cable to a point designated by the city At the request of the city, licensee at licensee's cost shall provide timely and reliable advice regarding acquisition, maintenance and use of any Studio and production equipment that may be obtained for that purpose by the city (b) All access channel operations must conform to the following minimum fequtfements- 1 Access channels shall be carried on the licensee's lowest priced service level offering. 2. The license may require a licensee or other entity to manage the access channels and to establish reasonable rules for the use of access channels consistent with the requirements of this chapter and the intended purpose of such access channels. 3. The use of any educational access channel shall be made available free of charge (e) The use of any local government access channels shall be made available free of (I) If required b , an annual basis a plan for publicizing access programs and access use channel capacity dedicated to access use may be used by the licensee when it is not being used for access purposes, and (h) A license shall include a provision for the licensee to provide channel capacity (H) System architectural design review process. At least 90 days prior to the date of initial construction of the rebuild, licensee shall deliver to city a detailed architectural design plan, which shall . .ludo at least the f llowi g elements (1) Location of headend and all hub sites, (2) Technical description of equipment at headend, hubs and nodes, 25 { (3) Technical analysis-of coaxial cable design or nodal service areas including, for example, specifications for amplifiers, active and passive devices, fiber coupling equipment and power suPPlies, (1) System level trunking maps to illustrate the architecture „f thcystem The ar late tural depict all electronics and physical f t of the cable plant, and (5) Th h ll l th ort„„,ty ♦e re a ,el plans an , en♦ e _ ,el r„lans i request by city (H) System physical design process Licensee shall provide city with detailed design maps defining the geographical and technical physical design of the system, showing all areas of the city to be served by each hub, as well as the construction and energization schedule by hub area for the upgraded systems Maps shall be provided at least 60 days prior to the release for construction. The city may review the design and accompanying maps and submit comments to licensee for review within 15 days of the date each map is provided to the city for review. Licensee shall integrate and implement city's comments into the construction plan. cut over or activation plan, and plan for notifying area residents of the construction work process (I) Interconnection A licensee shall interconnect its cable TV system with other systems located in the city, in nearby cities, or counties upon the request of the council, where the Apache Junction cable TV system and the adjacent system are both owned by the same cable operator, where the cable operator's share a common controlling parent or affiliate or where economically feasible (J) Local broadcast channels Each cable TV system shall carry as part of the basic local channels broadcast in its service area as required and defined in FCC regulations as amended. (K) Technology review and technical amendments (1) The city and licensee shall meet to discuss changes in cable TV system laws, regulations, technology, competing services, the needs of the community and other factors impacting cable systems. As a result of these discussions, this license may be modified by the city and the licensee to respond to the change in laws, regulations, technology, competing services,the needs of the community or other factors impacting cable TV systems. (2) If any of the following conditions occur, and upon written request of either licensee or city, the city manager and licensee may agree to meet and discuss in good faith the terms of a mutually agreeable license amendment 26 elk (a) Cable service similar to cable service offered by licensee is provided by any entity using the stream--ard public rights-of-way, which is not subject to similar licensing requirements of the city. (b) The cable act is amended to allow licensee to provide intrastate or interstate telecommumcation and any regional communications company to provide cable service. (c) Any other significant event occurs, including but not limited to a final non- appealable order or judgment by a court of competent jurisdiction, which either licensee or city believes may impact the current terms and conditions of the license (d) The purpose of the meeting and discussion is to use best efforts to reach mutually acceptable agreement for recommendation to the council for proposed council action within ninety days of such written request, on how to amend the license to relieve the city or the licensee from any commercial impracticability, which arises from the condition in question. This provision shall not require that the license be amended, however it is intended to facilitate a process whereby the parties may reach a mutually acceptable agreement (L) Conditions of meet public rights-of-way occupancy (1) General construction practices. Licensee's construction practices shall be in accordance with all applicable federal, state and local laws, rules and regulations, including but not limited to the federal Occupational Safety & Health Administration Regulations, as adopted by the State of Arizona. All installation of electronic equipment shall be of a permanent nature, durable and installed in accordance with the provisions of applicable codes (2) General operational practices. (a) The construction, operation and maintenance of licensee's system plant and equipment, including but not limited to the headend and distribution network system, towers, house connections, structures, poles, wire, cable, coaxial cable, fixtures and practices, shall be performed by appropriately licensed and qualified maintenance and construction personnel (b) The system shall be kept in a safe and suitable condition and shall be in compliance with, maintained, repaired and constructed in accordance with the applicable standards, procedures and practices contained in the National Electric Code and the National Electrical and Safety Code, as those codes may, from time to time, be amended; and shall additionally be maintained so as not to endanger or interfere with improvements the city may deem necessary, or to unlawfully interfere in any manner with the rights of any property owner, or to unnecessarily hinder or obstruct pedestrian or vehicular traffic on streets or other public rights-of-way (3) Safety Licensee shall at all times employ the standard of care attendant to the risks involved and shall install and maintain in use commonly accepted methods and devices for preventing failure and accidents which are likely to cause damage, injury or nuisance to the public, including public employees. 27 (4) Testing of RF Radiation Cumulative Leakage Index ("CLI") Licensee shall at all times comply and perform all testing in accordance with FCC rules and regulations Licensee shall have the right to discontinue its service to any premises where RF radiation which licensee cannot control is originating from inside the premises Once a year, licensee shall provide notice to the city of its schedule of RF leakage momtonng and testing. Upon the city's request, licensee shall furnish the city with copies of the monitoring and testing data and results following licensee's performance of scheduled RF leakage monitoring and testing. (5) Underground In all areas of the city where the cables, wires and other like facilities (electric and telephone) of public utilities exist underground, or are required by the city to be placed underground, licensee shall also place its cables,wires or other facilities underground. (6) Pole attachments Licensee shall use the poles and other properties of the city pursuant to any pole attachment agreements or public utility compames operating within the city, and licensee shall not construct, erect or maintain any support poles or other properties in the public rights-of-way within the city for the operation of its system except upon the express permission of the city, which consent shall not be unreasonably withheld upon a showing of need by licensee In all areas of the city where the cables, wires and other facilities of licensee are attached to any city-owned utility poles, licensee shall maintain those attachments subject to payment to the city in an amount determined by written agreement between the city and licensee. (M) Placement offacilities (1) This license agreement does not alter the city's governmental power to establish regulations of general applicability on the erection, construction or installation of any facilities which may be constructed, maintained or operated by a person authorized to use and occupy the streets and other public rights-of-way, including a cable TV system operator. (2) Licensee shall comply with those requirements, including obtaining permits prior to excavation and providing maps showing where construction or excavation is planned, and upon completion,providing maps showing actual construction if any changes are authorized. (3) The city retains the right to designate where licensee may place its facilities within the streets and other public rights-of-way. (N) Relocation for public improvements, request of the city; governmental powers Whenever because of public necessity or the welfare of the public generally, the city shall elect to change the grade of any street, or to sell or vacate any street, easement, or other public rights-of-way, or to construct or reconstruct any water lines, sanitary or storm sewers, watercourses, drainage ditches, conduits, playgrounds, traffic control devices or other public improvements, licensee shall, after 30 days written request from the city, remove and relocate its poles, wires, cable, conduits and other fixtures at its own expense (0) Transaction privilege taxes (1) Licensee shall obtain a city business license, which will be the mechanism for assessing all transaction privilege taxes 28 (2) Licensee shall pay all required taxes in a timely manner and shall allow access to its sales and construction records upon reasonable request of the city at the centrally located business office during regular business hours. (3) If audited, licensee shall comply with all requests of the city, and shall pay all applicable arrearages and or fees. (4) Failure to pay the assessed tax or failure to make a timely appeal of such assessment pursuant to the city tax code is considered a violation of the terms and conditions of the license agreement,which may result in liquidated damages set forth herein (5) A licensee must obtain a transaction privilege tax license to conduct business in the corporate limits of the city. In addition, licensee shall notify the city clerk of any and all construction agreements it has with any independent contractors and their subcontractors for any work to be performed within the city, who shall also be licensed in the State of Arizona and shall also obtain a transaction privilege tax license to conduct business within the city limits, Licensee is responsible for ensuring such tax license is obtained by its independent contractor and subcontractors. § 14-1-9 FEES, BONDS, LETTERS OF CREDIT, LIQUIDATED DAMAGES AND APPEALS. (A) Application fee Each application for a license to be granted under the authority of this chapter shall be accompanied by a non-refundable filing fee in the amount specified below, by certified or cashier's check made payable to the "City of Apache Junction"- No ref rid ble fling f es in the f llowing n nts a o iiquii�.red . (1) For an initial license or renewal. $2,500, (2) For consent to transfer or change ownership. $2,000, and (3) For license modifications pursuant to 47 U S C § 545 $2,500 (B) License fee. (1) In consideration of the fact the public right-of-ways streets of of the city will be used by a licensee in the operation of its cable system within the boundaries of the city and the public rights-of-way streets are valuable properties acquired and maintained by the city at great expense to its taxpayers, and in consideration of the costs incurred by the city in regulating and administering each cable license, the licensee shall pay annually to the city 5% of the licensee's gross revenue (2) This payment shall be computed quarterly, for the preceding quarter, as of March 31, June 30, September 30 and December 31 of each year Each quarterly payment shall be due and payable no later than 30 days after the relevant computation date Each payment shall be accompanied by a financial report showing in detail the gross revenues of the licensee related to that quarter. 29 /1 (3) Except as provided in division (B)(8) below and subject to 47 U.S.C. § 542, the payment required pursuant to this article shall be in addition to any other tax or payment owed to the city pursuant to any other applicable ordinance or chapter of the city code, regulation or law of the county, state or federal government. (4) A license fee not received in full by the city within 30 days of its due date shall be deemed delinquent and subject to a late fee of 2% of the amount overdue plus interest at the prime rate as reported in the Wall Street Journal (5) Where the licensee fee is based on gross revenues, the licensee shall file, with each '^ license payment, a statement of the gross revenues for the period on which the fees are based Such a licensee must file within 3 months of the end of its fiscal year a statement of gross revenues for the preceding year, which is either audited or certified as accurate by an officer of the licensee. Any payment of license fees to adjust for a shortfall in the quarterly payments for the preceding year must be made not later than the filing date for the audited annual statement of gross revenues. Adjustments for any overpayment will be credited to subsequent quarterly payments Interest and late charges (as specified above) will not be imposed for any payment necessary as a result of the yearly adjustment if the payment to correct the shortfall does not exceed 10% of the total payments made during the preceding year. In the event the payment exceeds 10%, the licensee is liable for interest and late charges for the entire amount due (6) The city manager shall have the right, upon reasonable notice, to inspect or audit during normal business hours a licensee's records showing the gross revenues and other relevant underlying data and information Upon examination of the information, the city manager has the right to recompute any and all amounts paid under a license Any additional amounts due the city as a result of an audit shall be paid by the licensee within 30 days following written notice to the licensee by the council, which shall include a copy of the inspection or audit report In the event that an inspection or audit results in additional monies owed the city in excess of 5% of the total paid, the licensee shall bear the total cost of the audit, and late charges and interest on the additional amount due (7) No acceptance by the council of any payment shall be construed as an accord that the amount paid is in fact the correct amount nor shall such acceptance of payment be construed as a release of any claim the council may have. (8) There shall be allowed as an offset against the license fee due under this article any amounts licensee paid to the city during the prior quarter in privilege license (sales) taxes, provided, however, that there shall be no offset to the extent that licensee made payments of privilege license (sales) taxes of any gross income (within the meaning of the privilege license [sales] tax ordinance) which is not included in gross revenues under this chapter The license shall provide for suitable procedures and methods for audit of this offset (C) Performance bond and irrevocable letter of credit generally. Licensee shall obtain and maintain during the entire term of the license, and any renewal or extensions thereof, a performance bond in the amount of$100,000 to ensure the licensee's faithful performance of its obligations under the cable law and this agreement, as well as an irrevocable letter of credit in 30 the amount of$25,000, both being provided to the city attorney within 30 days after execution of the license agreement and prior to any construction work in the public rights-of-way. (D) Components of performance bond The performance bond shall provide the following. (1) There shall be recoverable by the city jointly and severally from the principal and surety, any and all fines and penalties due to the city, and any and all damages, losses, costs and expenses suffered or incurred by the city resulting from failure of the licensee after notice and opportunity to cure to faithfully comply with. (a) The material provisions of this agreement, the cable law and other applicable law (b) All orders, permits and directives of the city (c) Payment of fees due to the city (d) Payment of anyclaims or liens due to the city Ym (2) (a) The losses, costs and expenses shall include but not be limited to attorneyfees P and other associated expenses (b) The total amount of the performance bond shall be forfeited in favor of the city in the event the licensee abandons the system at any time during the term of the license or extension penod (3) The performance bond shall be issued by a surety licensed to do business in the State of Arizona and with an A+9 or better rating for financial conditions and financial performance in Best's Key Rating Guide, Property/Casualty Edition, and shall be in a form approved by the city with the following endorsement "This bond may not be canceled or allowed to lapse, until 60 days after receipt by the city by certified mail, return receipt requested, of a written notice from the issuer of the bond of intent to cancel or not renew " (4) At such time as 95% of planned construction in the city is complete, as specified in license agreement, the council may, at licensee's request, reduce or eliminate the performance bond requirement (5) The rights reserved by the Council with respect to the bonds required are in addition to all other rights and remedies the Council may have under this chapter, the license agreement or any other law (E) Irrevocable letter of credit. Licensee shall provide an irrevocable letter of credit in the amount of$25,000 from a financial institution licensed to do business in the State of Arizona to secure its performance of all its obligations under this agreement and the cable law (1) (a) The form and content of the letter shall be approved by the city attorney and contain the following endorsements. 31 oiN "This letter of credit may not be canceled or allowed to lapse until 30 days after receipt by the city manager, by certified mail, return receipt requested, of a wntten notice from the issuer of the letter of credit of its intent to cancel or not to renew." (b) In the event the letter of credit is insufficient to pay the city for any compensation, damages, penalties, costs or expenses owed it pursuant to this chapter or the license agreement, the licensee's performance bond may be drawn upon by the city manager for any amount due the city over and above the amount of the letter of credit (2) The rights reserved to the city manager with respect to the letter of credit are in addition to all other rights it may have under this chapter, the license agreement and any other law. (3) Failure to maintain the letter of credit as required shall constitute a violation of the provisions of this chapter (4) The city may withdraw an appropriate amount from such funds including interest and penalties as applied against the letter of credit amount if in compliance with division (H) below (5) Within 15 days after the city gives notice that an amount has been withdrawn from the letter of credit amount, the licensee must deposit a sum of money equal to the amount withdrawn If licensee fails to deposit such amount, the entire letter of credit amount remaining shall be forfeited In addition, the failure may be grounds to revoke the license or take any other enforcement action. (F) Liquidated damages. Because licensee's failure to comply with the provisions of the license and this agreement will result in injury to the city, and because it will be difficult to estimate the extent of such injury, the licensee agrees to pay to the city liquidated damages for the following violations of the license which represent both parties' best estimate of the damages resulting from the specified violation To maintain that estimate, the parties agree that liquidated damage amounts arc in 1999 dollars and shall be increased each year by in accordance with the ems CPI. eemPletten,-$2700013er-dafer-eaell-day-the-ixtelatieti-eentinues- (1) Failure to provide government and economic development channels and failure to make PEG capacity available; failure to construct required links to PEG facilities, failure to make payments to su„„ort PEG_ $1,000 per day for each day the violation continues, in addition to any monetary payment under this agreement or the cable law. (2) Failure to submit required plans indicating expected dates of installation of various parts of the system, and failure to supply information, reports or filings lawfully required under the license agreement or applicable law or by the city $400 per day for each day the violation continues 32 (3) Failure, unless such failure is beyond the licensee's control, of the EAS to perform in the event of a public emergency or vital information situation. $250 per occurrence. (4) Failure to test, analyze and report on the performance of the system following a request from the city manager to do so, and failure to pay for consultant fees pursuant to this license agreement. $200 per day for each day the violation continues (5) For a violation of customer service standards. $200 per violation. (6) Failure to render required payment for reimbursement of any license expenses, or liquidated damages or failure to pay any required taxes to city. $100 per day, in addition to any monetary payment due under this agreement or the cable law (7) Failure to file, obtain or maintain any required performance bond or letter of credit amount. $50 100 per day (8) Failure to restore damaged property. $50 per day, in addition to the cost of the restoration as required elsewhere herein. (9) For violation of technical standards established by the FCC. $50 per day. (10) For failure to comply with reasonable order of the city manager. $50 per day. (11) Failure to properly install facilities (e g conduit at less than minimum depths, lines laying on top of ground, fences, and walls). $50 per day. (12) For failure to remedy any other violation of this chapter or violation of the license agreement. $50 per day. (G) Remedies. If the licensee violates any provision of law or of this license agreement, the city may have one or more of the following actions. (1) Impose liquidated damages provided herein, 'N. (2) Reduce the duration of the license period on any basis the city determines is reasonable and affords licensee reasonable due process; (3) Require licensee to pay its subscribers or classes of subscribers in an amount and on a basis the city determines is necessary to cure the breach or default, or equitably compensates for the violation, or (4) Seek legal or equitable relief from a court of competent jurisdiction. (H) Procedure for correcting license violations. (1) Notice of violation Should the city determine that licensee has violated one or more terms, conditions or provisions of this license agreement, a written notice shall be given to licensee informing it of an alleged violation (a "violation notice") The city manager shall set forth in such violation notice at a minimum, the following (a) Amount to be assessed, 33 emN eak (b) Factual basis for such assessment, and (c) Specific license provision alleged to have been violated. 1 Licensee shall have 14 days from the date the violation notice is given to inform the city manager in writing of the action licensee will take to correct the violation (a "correction notice") and to begin corrective action, or to dispute that a violation has occurred (a "notice of dispute") 2 If corrective action is undertaken, it shall be completed within 30 days of the date the violation notice is given, unless licensee's correction notice shows that the corrective action cannot be completed within 30 days with the exercise of all due speed or diligence, in which case licensee shall have a reasonable extension of time in which to complete the corrective action 3 Any notice of dispute shall specify the matter disputed by licensee and shall stay the running of any performance or corrective deadlines pertaining to the matter in dispute, and shall stay any other action the city may be permitted to take under this license agreement or applicable law. (2) Appeals. (a) In the event that licensee contests the city manager's assessment of liquidated damages, or fails to respond to the above-mentioned notices, within 14 days the city manager shall convene an administrative hearing (b) Licensee may pay the fine, proceed with this hearing or waive its rights to this administrative hearing and proceed directly to the public hearing before the council. 1 There shall be an administrative hearing conducted by the city manager, and licensee shall be afforded procedural due process, including an opportunity to be heard and to present evidence Within 14 days after the conclusion of such administrative hearing, the city manager shall issue a determination In that determination the city manager may. PIN a. Find that licensee is not in violation of this chapter or the license agreement; b. Find that the licensee is in violation of this chapter or the license agreement, but that violation was with just cause and waive any penalty that might otherwise be imposed, c Find that licensee is in violation of this chapter or of the license agreement, assess liquidated damages, take corrective action and foreclose on all or any appropriate part of the letter of credit or performance bond provided for in this chapter; or d Find that licensee is in material violation of this chapter and the license agreement and recommend the council declare the licensee in violation and recommend termination of the license agreement to the council, provided the council may consider such action only after a public hearing as set forth below 34 /'1% 2 If a public heanng before the council is requested by licensee or is held otherwise, it shall be de novo and it shall convene within 30 days of the request thereof. Licensee shall be afforded full due procedural process, including without limitation, an opportunity to be heard, to present evidence and to cross-examine witnesses The council's decision, which shall include findings of fact and conclusions, shall be made not later than 30 days after the conclusion of the hearing In that decision,the council may. a. Find that licensee is not in violation of this chapter or the license agreement; b. Find that licensee is in violation of this chapter or the license agreement, but that violation was with just cause and waive any penalty that might otherwise be imposed, c Find that licensee is in violation of this chapter or of the license agreement, assess liquidated damages, take corrective action and foreclose on all or any appropriate part of the letter of credit and/or performance bond provided for elsewhere in this chapter; or d. Find that licensee is in matenal violation of this chapter and the license agreement and declare the licensee in violation and revoke the license agreement (3) Licensee's options. (a) If after the hearing the disputed claim is upheld by the council, licensee shall have 30 days from the date of the mailing of the decision to remedy the violation or failure, unless corrective action cannot be completed within 30 days with the exercise of all due speed and diligence, in which case licensee shall have a reasonable extension of time in which to complete corrective action (b) Alternatively, licensee retains its right to seek review of the disputed matter under applicable law. The submission of a matter to mediation or to a court of competent jurisdiction shall stay the running of the above-described correction period § 14-1-10 TERMINATION AND REVOCATION. (A) Termination The license shall terminate, upon the expiration of the term thereof, unless renewal is successfully applied per applicable laws. (B) Revocation (1) If a licensee is in material violation of this chapter or in default of the terms of its license agreement, the city manager may make written demand that the licensee come into compliance with said requirements within a reasonable period of time, as specified in this chapter. If, after the cure period provided for in this chapter has run, the licensee is unwilling or unable to do so, the city manager may recommend the revocation, alteration or suspension of the license to the council, specifying the reasons for such action. (2) A copy of any such recommendations shall be served by certified or registered mail, return receipt requested upon the licensee, and the licensee shall be given at least 14 days notice pnor to the date of a public hearing before the council to consider such action, and the licensee will be given an opportunity to present evidence and make argument at such meeting. 35 (3) The council shall consider the recommendations, the response of the licensee and hear from any other interested persons, and shall determine whether or not the licensee is in violation or default of its obligations and, if so, whether such failure was with just cause. (4) If the council finds that the failure by the licensee was with just cause, the council shall direct the licensee to comply with such time and manner and upon such terms and conditions as are reasonable. (5) If the council determines that the licensee's failure was without just cause, the council may declare the license revoked, altered or suspended. The council may provide a specified penod of time for the licensee to come into compliance before the revocation takes effect. (6) A license may be revoked, altered or suspended by the council on the following grounds, among others, and taking into account any aggravating or mitigating circumstances. (a) Fails to comply with any material provision of this chapter or the license agreement; (b) Makes willful and material false or misleading statements in any application; (c) Engages in the practice of any fraud or deceit upon the city or subscribers; (d) Fails to abide by the privacy provision of this chapter; (e) Fails to make timely payment of any monies due the city pursuant to this chapter, (f) Unless otherwise provided in the license agreement, fails to commence construction in the license area within 3 months and to commence basic service within 6 months from the effective date of the license agreement; (g) Fails to file and maintain the bonds, insurance, records, failure to pay license fees or assessed property taxes, (h) For repeated material failure to maintain service quality under the standards prescnbed for which the licensee receives notice and fails to cure; or (i) Fails to restore service after 24 consecutive hours after notice to the licensee of interrupted service to the entire system, except when such interruption is beyond the control of the licensee. (C) System disposal. (1) In the event of termination or revocation of a license, the licensee involved shall offer to sell the cable TV system, at the fair market value, to a new licensee or applicant for a license (2) The fair market value shall be determined in accordance with generally accepted appraisal procedures The original cost of all tangible and intangible property, as well as salvage value, book value, replacement cost, cash flow and other factors will be considered (3) Under no circumstances shall any valuation be made for any right or privilege granted by license. Should the licensee fail to negotiate a sale, as described above, the city may purchase 36 a" amikk the system at the fair market value for the purpose of leasing to qualified operator until a buyer can be found, pursuant to the provisions of A.R.S. § 9-509. (D) Continuity of service (1) Licensee shall provide continuous service for the entire term of the license agreement to all subscribers and users in return for payment of the established rates, fees and charges. (2) If licensee seeks to sell or transfer, or if the city revokes or fails to renew the license, /1 licensee shall continue to operate the system as trustee for its successor in interest until an orderly and lawful change of operation is affected (3) This penod of operation shall not exceed 120 days from the occurrence of any of the above events Revenues accrued during that period of time shall be received by the operator (4) Dunng that time, the cable system shall be operated under terms and conditions consistent with the most recent license agreement and this chapter (E) Revocation for cause. In addition to all other rights, powers and remedies available to the city, the city shall have the additional, separate and distinct right to revoke this license agreement and all rights, authority, power, privileges and permissions granted licensee by this license agreement if licensee substantially fails to cure or correct a material violation of this license agreement within the applicable time penods following compliance within this agreement, absent licensee's pursuit of further remedies as provided for in this agreement or following a final decision of a court of competent jurisdiction reviewing the disputed matter (F) Revocation by ordinance (1) Revocation of the license shall be accomplished by passage of an ordinance at a properly noticed public heanng. (2) An ordinance revoking the license shall include the reason for the council to justify revocation. The effective date of the revocation shall be stated in the ordinance The license agreement shall terminate on the effective date of the revocation (3) An ordinance revoking the license shall not be passed without 30 days written notice to licensee that an ordinance to revoke the license will be considered by the council Licensee shall retain the privilege to be heard by the council or any council committee regarding the proposed revocation ordinance (4) Licensee may request a review of the revocation findings and conclusions pursuant to applicable law and shall retain any other remedy which may be available to it under law (G) Continuance of service after revocation. The city may require licensee to continue operating its system after revocation until operation of the system can be transferred to a new owner or the city exercises its rights herein. 37 (H) Removal after revocation (1) Upon revocation of the license and after a review of the revocation findings and/or conclusions by a court of competent jurisdiction, if review is sought by licensee, the city may require licensee to remove, at licensee's expense, any above-ground portion of its system from any street or other public right-of-way. (2) In removing its underground system, licensee shall refill and compact, at its own expense, any excavation that shall be made, and shall leave all streets and other public rights-of- way, and private property, in reasonable condition, and without affecting, altering or disturbing in any way electric,telephone, gas, steam or water utilities or other cable system operator cables, wires or attachments. (3) The insurance, indemnity and damage provisions of this license agreement shall remain in full force and effect during the entire term of removal. (I) Failure to remove system If licensee fails to commence removal of its system, or the part that was designated, in accordance with this section, within 60 days after written notice of the city's demand for removal is given, or if licensee fails to complete removal without 1 year after removal has begun,the city shall have the right to exercise one of the following options. (1) Assumption of ownership. (a) Declare all right, title and interest to the system to be in the city or its designee with all right of ownership including, but not limited to, the right to operate the system or transfer the system to another for operation (b) Upon that declaration by the city, licensee shall be entitled to receive an equitable price from the city for the value of the system (2) Abandonment of the system Declare the system abandoned and cause the system, or that portion designated by the city, to be removed. The cost of the removal shall be recoverable pursuant to the insurance and indemnity provisions of this license agreement, or from licensee 0 directly. (J) Additional duty to remove property. The city may require licensee to remove any above- ground portion of the system if licensee ceases to use that part of the system in the city for a continuous period of 12 months § 14-1-11 RENEWAL. The procedures for renewal of any cable license shall be governed by federal and state law, as of the time the license is in effect However, should there be no active renewal provisions, council may amend this chapter with renewal procedures which shall govern all licenses in effect or thereafter granted by city 38 § 14-1-12 TRANSFERS AND CHANGE OF CONTROL. (A) General restrictions No sale, transfer, assignment or lease of the license, or sale, transfer, assignment, lease or fundamental corporate change of or in licensee, including, but not limited to, a fundamental corporate change in licensee's parent corporation or any entity having a controlling interest in licensee, the sale of a controlling interest in the licensee's assets, a merger, including the merger of a subsidiary and parent entity, consolidation, or the creation of a subsidiary or affiliate entity, shall take place until a written request has been filed with city /'1 requesting approval of the sale, transfer or corporate change and such approval has been granted or deemed granted; provided, however, that the approval shall not be required where licensee grants a security interest in its license and/or assets to secure an indebtedness (B) Controlling interest restrictions (1) Any sale, transfer, exchange or assignment of stock in licensee, or licensee's parent corporation or any other entity having a controlling interest in licensee, so as to create a new controlling interest therein, shall be subject to the requirements of this section (2) The term controlling interest as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. (3) In any event, as used herein, a new controlling interest shall be deemed to be created upon the acquisition through any transaction or group of transactions of a legal or beneficial interest of 15% or more by 1 person Acquisition by 1 person of an interest of 5% or more in a single transaction shall require written notice to city. (C) Filing requirements The licensee shall file, in addition to all documents, forms and information required to be filed by applicable law, the following. (1) All contracts, agreements or other documents that constitute the proposed transaction and all exhibits, attachments or other documents referred to therein which are necessary in order to understand the terms thereof, (2) A list detailing all documents filed with any state or federal agency related to the transaction including, but not limited to, the PUC, the FCC, the FTC, the FEC, the SEC or any applicable state agency Upon request, licensee shall provide city with a complete copy of any such document, and (3) Any other documents or information related to the transaction as may be specifically requested by the city. (D) Time limit. City shall have such time as is permitted by federal law in which to review a transfer request. (E) Costs and filing fees. The licensee shall reimburse city for all legal, administrative and consulting costs and fees associated with city's review of any request to transfer Nothing herein shall prevent licensee from negotiating partial or complete payment of such costs and fees by the transferee Licensee may not itemize any such reimbursement on subscriber bills, but may 39 recover such expenses in its subscriber rates Licensee shall also pay a $2,000 fee for a sales, transfer, assignment or lease request pursuant to this section § 14-1-9 (A)(2) (F) Guarantees. In no event shall a sale, transfer, corporate change or assignment of ownership or control pursuant to this section be approved without the transferee becoming a signatory to this license and assuming all nghts and obligations thereunder, and assuming all other rights and obligations of the current licensee to the city including, but not limited to, any adequate guarantees or other secunty instruments provided by the license. (G) City's right to purchase. (1) In the event of any proposed sale, transfer, corporate change or assignment pursuant to this chapter, city shall have the right to purchase the system for the value of the consideration proposed in such transaction. (2) City's nght to purchase shall arise upon city's receipt of notice of the matenal terms of an offer or proposal for sale, transfer, corporate change or assignment, which licensee has accepted. Notice of such offer or proposal must be conveyed to city in writing and separate from any general announcement of the transaction (H) Waiver of rights by city. City shall be deemed to have waived its right to purchase the system pursuant to this section only in the following circumstances (1) If city does not indicate to licensee in writing, within 60 days of receipt of written notice of a proposed sale, transfer, corporate change or assignment as contemplated above, its intent to exercise its nght of purchase, or (2) It approves the assignment or sale of the license as provided within this section. (I) City right of refusal. No license may be transferred if city determines licensee is in noncompliance of the license unless an acceptable compliance program has been approved by city. The approval of any transfer or ownership pursuant to this section shall not be deemed to waive any rights of city to subsequently enforce noncompliance issues relating to this license em even if such issues predated the approval,whether known or unknown to city § 14-1-13 INDEMNITY AND INSURANCE. (A) Indemnification of city officials Licensee shall indemnify, defend and hold harmless the city, the members of the council, including the mayor, and all other officials, employees and agents, boards or commissions, when acting in their capacity as municipal officials, employees or agents, boards or commissions, from and against any and all claims, suits and actions, liability and judgment for damages or otherwise. (1) Damage to person or property. For actual or alleged injury or death to individuals, or damage to property, in any way arising out of or through, or alleged to arise out of or through, any act or omission of licensee or its officers, agents, employees or contractors, or to which licensee or its officers, agents,employees or contractors acts or omissions in any way contribute; 40 (2) Violation of rights or interests. Arising out of or alleged to arise out of any claim for damages, with respect to licensee's operation of a cable TV system, for invasion of the right of privacy, defamation of any person, or the violation or infringement of any copyright, trademark, trade name, service mark or patent or any other right of any person, or (3) Statutory violations. Arising out of or alleged to arise out of licensee's failure to comply with the provisions of any statute, regulation or ordinance of the United States, the State of Arizona or the city (B) Defense of actions. (1) Nothing in this license agreement shall prevent a party indemnified and held harmless by another from participating in the defense of any litigation by its own counsel at its sole expense (2) That participation shall not under any circumstances relieve the indemnifying party from its duty defending against liability or paying any judgment entered against that party (C) City's negligence or willful misconduct. Notwithstanding anything to the contrary contained in this section, the city shall not be indemnified or reimbursed in relation to any matter, in any action, suit or proceeding. (1) Arising out of the operation, use or distribution of programming or services over the Government, Economic Development and PEG Channels facilities or access funding, or (2) In which the city, its officials, employees or agents, is negligent in the performance of its obligations under this license agreement, or has engaged in willful misconduct or criminal acts, provided, however, that licensee shall provide a defense even though, in good faith, it believes at the commencement of any action, that the city may have engaged in that conduct If the city, its officials, employees or agents, is found to have engaged in that conduct, licensee shall be reimbursed by the city for all amounts paid and expenses incurred by licensee in connection with that action, suit or proceeding, including reasonable attorney fees (D) Indemnity for construction, maintenance and operation. (1) The licensee shall at its sole cost and expense, indemnify, hold harmless and defend the city, its officials, boards, commissions, agents and employees by providing immediate defense with counsel approved by the council, against any and all claims, suits, causes of action, proceedings and judgments for damages arising out of construction, maintenance or operation of the cable TV system (2) City shall provide -l-5 30 days' notice of any claim or potential claim and shall provide copies of any summons and complaint (E) Required insurance The licensee, upon acceptance of the license agreement, shall provide the city with and maintain in full force throughout the term of the license agreement, insurance issued by a company duly authorized to do business in the State of Arizona, insuring with respect to the installation, construction, operation and maintenance of the system as follows• 41 (1) Comprehensive general and automobile liability coverage including, but not limited to, blanket contractual liability, completed operations liability, broad form property damage including but not limited to coverage for explosion, collapse, underground hazard and automobile non-ownership liability This insurance shall be written in the following minimum amounts. (a) Comprehensive general liability. $2,000,000 combined single limit, bodily injury and property damage, (b) Comprehensive automobile liability. $2,000,000 combined single limit, bodily injury and property damage, and (c) Excess umbrella liability, covering all the above mentioned hazards, in the minimum amount of$5,000,000. (2) Workers' compensation coverage as required by the laws and regulations of the State of Arizona. (3) All insurance policies required herein shall include the city as a named insured party (4) Licensee shall be solely responsible for all premiums due and payable for insurance required herein. Licensee shall provide to the city a certificate of insurance evidencing compliance with the coverage requirements listed above (5) All insurance policies required herein shall be in a form approved by the City Attorney and shall include a 60 day notice of cancellation or modifying endorsement. (F) Self insurance. The provisions of this article, in the discretion of the city, may be satisfied by proof of self insurance § 14-1-14 ADMINISTRATION. (A) Inspection of records The council reserves the right during the term of the license agreement and dunng normal business hours and upon the giving of reasonable notice to examine, audit and review licensee's contracts, engineering plans, accounting, financial data and, subject to subscnber pnvacy laws, service records relating to the property and operations of the licensee and to all other records required to be kept pursuant to this chapter The records shall be treated as confidential by city and shall not be released, either orally or in any written form whatsoever, without the express written permission of the licensee, provided however that release shall be permitted in order for city to comply with the Arizona Public Records Act pursuant to A R S §§ 39-101 et seq and as amended (B) Licensee rules and regulations Copies of the rules, regulations, terms and conditions adopted by the licensee for the conduct of its business shall be provided to the city manager, upon request of the city manager. 42 PIN (C) City Manager (1) The city manager or his or her designee shall have responsibility for the day-to-day administration of cable operations within the city as governed by this chapter and the applicable license agreements (2) The city manager shall be empowered to take all administrative actions on behalf of the council except those actions specified herein which are reserved to the council or another city /'1 office or officer § 14-1-15 GENERAL PROVISIONS. (A) Non-discrimination Licensee shall not deny service, access or otherwise discriminate against subscribers, users or residents of the city Licensee shall comply at all times with all applicable federal, state and city laws, rules and regulations, executive and administrative orders relating to non-discnmination and equal employment opportunities and requirements. (B) Laws and codes. Licensee shall comply fully with all applicable local, county, state and federal laws, codes, ordinances, rules and regulations. (C) Cumulative rights and remedies Except as specified herein, all rights and remedies of the city manager and the council in this chapter are cumulative and may be exercised singly or cumulatively at the discretion of the city manager or the council. § 14-1-16 RIGHTS RESERVED TO COUNCIL. Without limitation upon the rights which the council may otherwise have, the council does hereby expressly reserve the right to amend any article or provision of this chapter for any reason determined to be desirable by the council including, but not limited to. (A) New developments in the state of technology of cable systems; and (B) Any changes in federal or state laws,rules or regulations. 1 43 ITEM NO. 10 PUBLIC HEARING ONLY-NO ACTION AT THIS TIME eIN PUBLIC HEARING 0.104 1. For DECEMBER 2014 CENTURYLINK CABLE TV LICENSE APPLICATION SUBMITTAL. 2. Will ASSISTANT CITY MANAGER BRYANT POWELL speak to the Council? 3. Will the applicant or spokesperson please speak to the Council on this item? 4. Is there anyone from the public who wishes to speak on this item? (Are there any "Request to Speak" forms?) 5. If not,this hearing is closed. 6. Is there any discussion? 7. Call for a motion. 8. Call for a second. 9. Roll call vote. ,, 1` City of Apache Junction, Arizona � 300 E Superstition � Boulevard ` ' Agenda Item Cover Sheet Apache Junction,AZ 85119 Agenda Item No 11 , i i F 't File ID 14-649 Sponsor: Bryant Powell Agenda Date. 1/20/2015 Index- In Control. City Council Meeting Consideration of approval of the December, 2014, CenturyLink cable TV license application Attachments. r City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 DECEMBER 16, 2014 VERSION LICENSE AGREEMENT FOR A NON-EXCLUSIVE CABLE SYSTEM BETWEEN THE CITY OF APACHE JUNCTION AND QWEST BROADBAND SERVICES, INC., D/B/A CENTURYLINK, INC. THIS AGREEMENT, executed this day of , 2015, by and between the City of Apache Junction, an Arizona municipal corporation (the "City"), and Qwest Broadband Services, Inc. d/bla CenturyLink, Inc., a Delaware Corporation (the "Licensee" or "CenturyLink"), hereinafter individually and collectively referred to as a "Party" or the "Parties". RECITALS A. The City is authorized to grant one or more non-exclusive licenses pursuant to Arizona Revised Statutes ("A.R.S.") §§ 9-501 et seq., and the Apache Junction City Code ("A.J C.0 ") Volume I, Chapter 14, for operating and maintaining cable communications systems within the corporate boundaries of the City. B. CenturyLink has filed an application with the City for a cable license agreement (the "Agreement" or "License Agreement") and has paid the mandatory $2,500.00 application fee and the City Council has accepted the application for full consideration. C. The City has undertaken an extensive review of cable service in the City, including but not limited to a review of the Licensee, its record of service, its facilities, the cable-related community needs of the City for both the present and future, and the Licensee's ability to carry out its commitments, and its overall financial, legal and technical qualifications to hold a City issued cable TV license. D. At the time of the grant of this Agreement, the City has found Licensee to be financially, technically and legally qualified to operate the Cable System. E. Licensee agrees to be bound by all the terms of this license, pursuant to A.J.C.C., Vol. I, Chapter 14, Cable Systems, as amended. F. The City has determined that the grant of a non-exclusive license to Licensee is consistent with the public interest. 1 G. Pursuant to A.R.S. § 9-507(B), the City has held a public hearing affording the public the opportunity to comment on this license. H. The City and Licensee have reached agreement on the terms and conditions set forth herein and the Parties have agreed to be bound by those terms and conditions. AGREEMENT 1. DEFINITIONS Except as provided below, all terms used herein have the definitions as set forth herein or in A.J.C.C., Vol. I, Chapter 14, Cable System s and as set forth in this Agreement: A. "Remote Terminal" means a "Digital Subscriber Line Access Multiplexer" ("DSLAM") capable of offering Cable Services to Subscribers. B. "Easement", unless the context otherwise indicates, means those public rights-of-way owned by the City, the terms, conditions or limitations upon which are not inconsistent with the erection, construction or maintenance of a Cable System, its structures or equipment. C. "Expanded Basic Service" means the next most highly penetrated tier of cable service programming above the Basic Service tier excluding premium or pay-per-view services. D "Installation" means the connection of the Cable System from a remote terminal to a subscriber's residence or place of business. E. "QC" means Qwest Corporation, an affiliate of Qwest Broadband Services, Inc. ("QBSI") and an indirect wholly-owned subsidiary of CenturyLink, Inc. F. "Living Unit" means a distinct address in the QC network inventory system where QC currently has, had in the past, or had planned to provide telephone or high-speed internet service to a customer. This includes, but is not limited to, single family homes, multi- dwelling (e g , apartment buildings and condominiums) units and business locations. The Parties reserve the right to add additional definitions to this Agreement at any time in the future when both Parties agree additional definitions are needed to clarify the Agreement. Any additional definitions shall be treated in the same manner as any other amendment to the Agreement. 2 2. GRANT OF AUTHORITY A. License Granted. The City hereby grants a cable license to Licensee for the privilege to use the public rights-of-way for installing cables, wires, lines and other facilities to operate a cable system. This license grant does not expressly or implicitly authorize the Licensee to provide service to, or install cable, wires, lines or any other equipment or facilities upon property without owner consent (except for compatible easements or rights-of-way pursuant to 47 U.S.C. § 541(a)(2)) or to use publicly or privately owned utility poles or conduits without a separate agreement with the owners. This license grant authorizes the Licensee to so use, operate and provide similar facilities or properties rented, licensed or leased from other persons, firms or corporations, including but not limited to, any public utility or other licensee licensed or permitted to do business in the City, provided, however, that neither the Licensee nor the third party shall be relieved of any regulation or obligation as to its use of the facilities in the streets. This License Agreement is not a "franchise" under Arizona law (A R S § 9-501). B. Non-Exclusive Grant. Licensee's right to occupy and use streets and public rights-of-way is not exclusive, and may not be sold, transferred or assigned other than as set forth in the Cable Regulations in A.J.C.C., Vol. I, Chapter 14. The City may grant similar licenses for other cable systems and may permit others to use its streets and public rights-of-way for other purposes as it deems fit. Any privilege claimed under this License by the Licensee in any public street or other public property are subordinate to any prior or subsequent lawful occupancy or use thereof by the City or any other governmental entity, are subordinate to any prior lawful occupancy or use thereof by any other person, and are subordinate to any prior Easements therein, provided however, that nothing herein shall extinguish or otherwise interfere with property rights established independently of this Agreement. C. Effect of Competition. The City desires competition in cable services within its corporate limits and believes competition will benefit the residents of the City. Further, the City believes that competition can develop without substantial injury to Licensee or Licensee's ability to perform its promises in this Agreement. Licensee has entered into this Agreement with a full understanding that the City encourages and will facilitate development of competition with licensing terms and conditions no more favorable or less burdensome between cable operators as determined in City's sole discretion. 3 D. Term. 1 This License and the rights, privileges and authority granted hereunder shall take effect on March 1, 2015 (the "Effective Date") and shall terminate on March 1, 2020 unless terminated sooner as hereinafter provided. If, at the end of the third year Term after the Effective Date, Grantee offers Cable Services to 20% of the Living Units in the City, the Grantee, at its option, may elect to extend the Term of the License for an additional two (2) years to March 1, 2022. If, at the end of the fifth year Term after the Effective Date, Grantee offers Cable Services to 50% of the Living Units in the City, the Grantee, at its option, may elect to extend the Term of the License for an additional three (3) years to March 1, 2025. As of September 30, 2014, there were 26,505 Living Units in the City. E. Licensee's Acceptance. Acceptance of this Agreement and all of the terms herein shall be reflected by the execution of this Agreement by Licensee. This Agreement must be accepted by Licensee within thirty (30) calendar days after passage of the ordinance granting this License, provided that all bonds, letters of credit and insurance certificates are also provided to the City by that date F. Licensee's Acknowledgements. Licensee acknowledges that it has not been induced to enter into this Agreement by any understanding or promise or other statement, whether verbal or written, by or on behalf of the City or by any other third person concerning any term or condition of this Agreement not expressed herein. G. Compliance with Zoning and Construction Codes. Licensee must comply with the terms of all zoning, building and other ordinances, regulations, codes, guidelines and laws controlling the location or construction of its system, including without limitation towers, poles, cables, amplifiers, conduits, Remote Terminals, and all other facilities owned, leased and otherwise used by Licensee for a Cable System. This obligation includes requirements to obtain applicable permits and to pay applicable plan review, permit and inspection fees. H Application of Apache Junction City Code, Chapter 14. This License is subject to and shall be governed by all terms, conditions and provisions of Chapter 14 of the A.J.C.C., Volume I, currently in effect and as amended, provided, however, that such amendments shall be reasonable and not materially modify the terms of this 4 License. Licensee agrees to be in compliance with all of these provisions at all times during the License Term set forth in Section 2(D) above. In the event of a conflict between the terms, conditions and provisions of Chapter 14 of the A.J.C.C., Volume I, and the terms, conditions and provisions of this Agreement refer to Section 12 (N) herein. Applicable Law. This License is subject to and governed by all requirements of the Cable Communications Policy Act of 1984, 47 U.S.C. Section 521, et seq., and any amendments thereto; A.R.S. §§ 9-505 through 9-510 and unless exempted by the terms thereof; and other federal and state laws and regulations and local laws ordinances and regulations governing cable service. In the event of a conflict between the terms and conditions of this License and the terms and conditions on which the City can grant a License, the federal and state law or statutory requirements of both shall control. J. Ownership of Facilities in Rights-of-Way. Licensee promises and guarantees, as a condition of exercising the privileges granted by this License, that any Affiliate of the Licensee directly involved in the offering of Cable Services in the City or directly involved in the management or operation of the Cable System in the City, will also comply with the obligations of this License. However, the Parties acknowledge that QC will pull permits and be primarily responsible for the construction and installation of the facilities in the public right-of-way, which will be utilized by Licensee to provide Cable Services and QC will own, operate and maintain all such facilities. So long as QC does not provide Cable Services to Subscribers in the City, QC will not be subject to terms and conditions contained in this License pertaining to the delivery of Cable Services QC's installation and maintenance of facilities in the public right-of-way are governed by applicable law. The Parties also acknowledge that if and when QC does provide Cable Services to Subscribers, QC must first obtain a separate license from the City. To the extent Licensee constructs and installs facilities in the public right-of-way, such installation will be subject to the terms and conditions of this License. 3. SYSTEM FACILITIES, EQUIPMENT AND SERVICES A. Guidelines for System Facilities, Equipment, and Services. The following performance guidelines shall serve as the initial minimum guidelines for the design, installation, maintenance and operation of the System: 5 1. Compliance with FCC Rules. All designs for, installations on, and maintenance performed on the System by the Licensee must be in accordance with ("FCC") rules and regulations governing technical performance and operating standards, currently in effect or hereinafter amended. 2 Continuous 24-Hour Operation. The System must be designed and capable of continuous 24-hour daily operation without material degradation of signal except during extremely inclement weather, and immediately following extraordinary storms which adversely affect utility services or which damage major System components. Any general testing of the System which causes any interruption to any subscriber's service must be completed between the hours of 1.00 a.m and 5-30 a.m. Arizona Time, and Licensee must make reasonable efforts to notify subscribers within thirty (30) calendar days of such testing and possible interruption. 3 Specifications of System. a. General Requirements. Within ninety (90) calendar days after obtaining the necessary permits, licenses and authorizations, Licensee shall commence whatever construction and/or installation is necessary to begin providing cable services to the City and Subscribers. Licensee is under no obligation to activate a Remote Terminal, but Licensee may not, without permission of the City deactivate a Remote Terminal. b. General Description. The System is intended to provide cable services to Licensee's customers c. Underground Facilities Licensee's new cable, wires, and other equipment must be placed underground unless technologically impossible for such equipment to function properly If the City in the future so requires, for all or any portion of the City, that all the utilities in such area place their lines underground, then Licensee shall in a reasonable period of time set by the City place its existing cable, wires, or other equipment in such area underground without charge, expense or liability therefore to the City. d. Technical Specifications. The System must at a minimum meet FCC requirements as set forth in 47 C F.R. § 76, et seq. If federal laws or regulations are 6 subsequently amended, or minimum technical specifications are no longer mandated by the FCC, the FCC's technical specifications in effect at the time of adoption of the Agreement shall govern and remain enforceable under this Agreement unless specifically preempted by state or federal law. e. Picture and Sound Quality. The System must be ... capable of relaying without distortion to every Subscriber: (1) All picture and picture information, including, but not limited to color, teletext, closed-captioning information and other information displayed on a Subscriber's normally operating television screen; and (2) All sound and sound elements, including but not limited to stereo, second audio channel and all subcarriers and or otherwise modulated information reproduced by a Subscriber's normally operating television audio system 4. FCC Technical Standards. Should the FCC promulgate amended technical standards which exceed these performance guidelines set forth within this Agreement, Licensee must operate its System so that it is capable of operating according to such FCC standards. 5. Blue Stake Center. Licensee must, if not already a member, become a member of the Blue Stake Center, or its equivalent, within thirty (30) calendar days following the Effective Date. 6. Stand-by Power. Licensee must provide stand-by power generating capacity at the headend and at all nodes. Licensee must maintain motorized or battery stand-by generators capable of at least forty-eight (48) hours' duration at the headend, and battery back-up power capability of at least forty-eight (48) hours' duration for all System nodes with automatic dialer response systems to alert the System headend when commercial power is interrupted. The Licensee must test the headend generator and provide all test results to City when the City deems such tests appropriate to ensure the system can be operated during a local commercial power outage. 7 Service for the Disabled. For hearing impaired Subscribers, Licensee must provide information concerning the cost and availability of equipment to facilitate the reception of the closed caption signal. In addition, the Licensee must have functional Telecommunication Device for the Deaf/Teletype ("TDD/TYY") (or equivalent) equipment at its call center and use such TDD/TYY equipment as required to communicate with the public using such equipment to communicate with Licensee. 8. Periodic Evaluation. The field of cable communications is rapidly changing and may see many regulatory, technical, financial, marketing and legal changes during the term of this Agreement. Therefore, in order to provide for a maximum degree of flexibility in this Agreement, and to help achieve a continued advanced and modern System, the following apply: a. City may require evaluation sessions at any time during the Term of this Agreement, upon sixty (60) calendar days' written notice to Licensee. b. Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, customer complaints, amendments to this License, judicial rulings, FCC rulings and any other topics City and Licensee deem relevant. c. As a result of a periodic review or evaluation session, City and Licensee shall meet and may develop such changes and modifications to the terms and conditions of this Agreement, as are mutually agreed upon and which are both economically and technically feasible. 9. Technical Changes and Modification Costs. Licensee agrees that it must not apply or seek to apply or make any claim that all or any part of the technical changes and modifications costs set forth in this Section 3(A)(9) are Licensee Fee Payments under 47 U.S.C. § 542 and/or applicable state law nor are the technical changes and modifications costs to be considered other payments or contributions to be made by Licensee to the City pursuant to this Agreement. Licensee must not deduct any technical changes and modifications 8 costs from, or offset such expenses against, any taxes, fees or assessments levied or imposed by the City on Licensee. 10. Acknowledgement and Waiver of Claims. Licensee acknowledges that it has had an opportunity to review the terms and conditions of this Agreement and that under current law Licensee believes that said terms and conditions are not unreasonable, arbitrary, and that Licensee has voluntarily entered into this Agreement and that Licensee believes City has the power to require the terms and conditions contained in this Agreement. Licensee agrees that it will not, at any time, set up against City in any claim or proceeding, any condition or term of the this Agreement as unreasonable, arbitrary, void as of the Effective Date of this Agreement or that City had no power or authority to require such term or condition. 11. Design. Licensee's video network shall be fully integrated with its telephone network and shall use an Ethernet-based, switched digital video service (not a QAM-based broadcast system) The Cable System shall have a fully activated capability to provide broadcast quality of equal quality to those provided over a traditional 750 MHz or higher hybrid fiber coaxial cable system. Licensee shall make available high definition ("HD") capability to all Subscribers. 12. Digital Capability. The Licensee must design the System so that channel capacity may be readily expanded and digital programming delivered to Subscribers through digital video compression or similar appropriate technology without compromising signal or service quality or requiring alterations, upgrading or reconstruction. 13 System and Institutional Network Build Schedule. a. Licensee must install and thereafter maintain the functionality and access of the System and is responsible for all malfunctions of such System, including without limitation the repairing of damaged cables, conduit facilities, and any other portion of the System at Licensee's cost, regardless of how such damage occurred, unless it was caused by the negligence of City, in which case Licensee is still responsible for repair but may seek reimbursement of actual costs (without markup) from City. 9 b. Failure to commence and diligently pursue the above requirements in this subsection and to complete each of the matters set forth above, shall be grounds for liquidated damages or termination of the License. c. The City Council, in its discretion, may extend the time for the commencement and completion of construction and installation for additional periods if the Licensee acting in good faith experiences delays by reason of circumstances beyond its control. Such extension shall be considered in a public hearing with both Parties executing a written extension agreement after a vote of the Mayor and City Council. 14 System Acceptance Schedule. The procedure set for acceptance of the system for purposes of Term renewal is set forth in section 2(D). 15 Emergency Alert System and Audio Emergency Override. Licensee must install and thereafter maintain for use by the City, an Emergency Alert System ("EAS"), as required by FCC rules and regulations currently in effect and hereinafter amended. As a component of the EAS required by FCC rules, if and when it is technically feasible for local government to have EAS override capability, the Licensee must also provide a secure audio emergency override system to permit City Officials to interrupt the audio portion of all channels for the purpose of transmitting public safety, health, and welfare messages to all Subscribers. In the event that both systems are simultaneously activated, the Emergency Alert System shall take priority over the Audio Emergency Override System. 16 Public Service Drops. a. Public Buildings. Licensee must provide, free of charge and not subject to offset against the License Fee, throughout the term of this Agreement, one (1) service drop, two (2) outlets and two (2) converter units if necessary, and Basic Service and Expanded Basic Service (i.e. together the equivalent of sixty (60) or more Channels of programming) or the future analog or digital equivalent of such service tiers offered by Licensee in the City ("Complimentary Service") to all to all governmental or educational buildings in the City and such other public institutions subsequently 10 designated by the City as determined in the City's sole discretion including but not limited to: City Hall, the Multi-generational Center, the Library, the Public Works Department, Animal Control Division, the Police Department, and the Parks and Recreation Department Buildings (former City Attorney, City Court, and current Parks and Recreation Administration office buildings) ("Public Buildings") provided however, that such Public Buildings are within four thousand (4,000) cable feet of an activated Remote Terminal. Subject to the City providing all required Easements to Licensee if not already granted, all standard drops must be completed within thirty (30) calendar days of the request of such service drop b. Designated Representative. For purposes of this Section, the term "Designated Representative" shall include anyone designated by the local governing body responsible for the Public Building in question. The Designated Representative may request complimentary service to Public Buildings which shall be made in writing. Licensee is solely responsible for all costs of extension for any installation which is less than 4,000 copper loop-feet Licensee's activated Remote Terminal. c. The City acknowledges and agrees that Licensee shall have no obligation to provide complimentary service to any private person or entity which is occupying space in a Public Building. 17. Residential and Commercial Service Drops. Licensee must make Cable Service available to any residential dwelling unit or any commercial establishment within the City at the standard connection charge if the connection requires a Standard Drop. Such service must also be completed within seven (7) calendar days from such date of request, subject to Licensee's diligent efforts to obtain any required Easements or permits and for payment for any additional facilities. 18. Interconnection. Licensee must design the System so that it may be interconnected with all of the other cable systems or similar communications systems in the City. Interconnection of systems may be made by any appropriate methods that ensure no material degradation of signal or service occurs between the connected systems. 11 19 Provision of Cable Service in General. Licensee must make cable service available to each residential dwelling unit in the City located within four thousand (4,000) cable feet of a Remote Terminal. 20. Annual Meeting. At a minimum, each year this License is in effect, Licensee must meet with the City in the first quarter of the calendar year and provide a detailed report to the City the Licensee's construction schedule for the next year, including mapping. Additional meetings may be coordinated by either Party throughout the year, if necessary. 21 Seasonal Service For Subscribers desiring only seasonal service, Licensee shall either offer seasonal service at a reduction from its standard rates or shall offer a reduced prescheduled seasonal installation and disconnection charge. 4. OPERATION AND MAINTENANCE PROVISONS A. Customer Service Standards. Licensee must furnish, render and sell Cable Service to its subscribers in a manner which, at a minimum, conforms to the FCC Customer Service Standards pursuant to 47 C.F.R. 76.309 and 47 C.F.R. 76.1601-1603, as amended from time to time and so long as those standards exist. Notwithstanding Licensee's obligation to comply with the above FCC Customer Service Standards, Licensee must at all times comply with the following specific standards: 1. System Office Hours and Telephone Availability. a. Licensee must establish and maintain at least one (1) publicly listed local telephone number or toll-free telephone number which is available to cable Subscribers and the public twenty-four (24) hours a day, seven (7) days a week. (i) Trained representatives of Licensee must be available to respond to Subscriber telephone inquiries during normal business hours. (ii) After normal business hours, an access line will be available to be answered by a service or an automated response system, including a phone answering system. Inquiries received after 12 normal business hours must be responded to by a trained representative of Licensee on the next business date. (iii) Telephone equipment must be made available to permit persons with hearing impairments to communicate with the Licensee. b. Under normal operating conditions, where "normal operating conditions" has the same meaning as in the FCC Customer Service Standards, each of the following four (4) standards must met not less than ninety percent (90%) of the time, as measured by Licensee on a quarterly basis: (i) Telephone answer time by a customer representative, including waiting time, will not exceed thirty (30) seconds from when the connection is made. (ii) If the call needs to be transferred, transfer time will not exceed thirty (30) seconds. (iii) Subscribers will receive a busy signal less than five percent (5%) of the time. (iv) No more than five percent (5%) of Licensee's calls from subscribers, measured monthly for the prior three (3) months, shall be abandoned, meaning a caller hangs up while on hold for a customer representative. _ c. Licensee must maintain at least one (1) physical office located no more than fifteen miles distance from Meridian Drive, Apache Junction, Arizona The physical office(s) must be a place(s) conveniently located where subscribers may pay their bills, register complaints and have them resolved, schedule installations and service calls, process new service requests, obtain assistance on technical problems, obtain and return converter boxes or other equipment, remotes and other customer premises equipment, and receive information on Licensee and its services. Such office must be open at least those hours during which similar businesses in the service area are open to serve customers, Monday through Friday, and must include evening and weekend 13 hours to meet the needs of residents of the City. In addition, Licensee must make available a direct contact telephone number of local personnel available to City staff in order to facilitate timely responses for questions and concerns of cable television customers who have contacted the City directly. Licensee agrees that it shall not apply or seek to apply or make any claim that all or any part of costs associated with the requirements of this Section 4(A)(1) ("Local Office Costs") are Licensee Fee Payments under 47 U.S.C. § 542 and/or applicable state law nor are the Local Office Costs to be considered other payments or contributions to be made by Licensee to the City pursuant to this Agreement. Licensee must not deduct any Local Office Costs from, or offset such Local Office Costs against, any taxes, fees or assessments levied or imposed by the City on Licensee. d It is customary for Licensee to pick up and deliver equipment directly to subscribers. However, in addition to the physical office requirement noted above Licensee shall provide five (5) locations conveniently located within the City limits for, paying bills, ordering service, and other cable TV administrative services. 2 Installations, Outages and Service Calls. a Under normal operating conditions, each of the following standards will be met no less than ninety-five percent (95%) of the time, as measured by Licensee on a quarterly basis: (i) Standard installations will be performed within seven (7) business days after an order has been placed. "Standard" installations are those that are located within four thousand (4,000) cable feet of a Remote Terminal (ii) Excluding conditions beyond its control, Licensee will begin working on service interruptions, as defined herein, promptly and in no event later than twenty-four (24) hours after the interruption becomes known to Licensee. Licensee will begin actions to correct other service problems within twenty-four (24) hours after notification of the service problem. 14 b. Licensee must not cancel an appointment with a subscriber after the close of business on the business day prior to the scheduled appointment. The appointment may be rescheduled as is necessary, but must not be canceled unless by subscriber request. c. As soon as Licensee is or should be aware that Licensee is behind schedule for an appointment with a subscriber and will not be able to keep the appointment as scheduled, the Licensee must contact the subscriber by telephone unless the subscriber does not have a telephone number or refuses to provide such telephone number to Licensee. The appointment will be rescheduled, as necessary, at a time which is convenient for the subscriber. d Service calls must be performed during a four (4) hour window that has been communicated to the subscriber at least five (5) calendar days in advance of such service call, unless otherwise requested by a subscriber. The convenience of Subscribers shall always be the primary accommodation goal of Licensee. 3. Communications Between Licensee and Subscribers. a. Notifications to subscribers: (i) Licensee must provide written information on each of the following areas at the time of — installation of Cable Service, at least annually to all Subscribers, and at any time upon the request of a Subscriber: (a) Products and Cable Service offered; (b) Prices and options for Cable Service and conditions of subscription; (c) Installation and service maintenance policies; (d) Instructions on how to use the Cable Service; (e) Channel positions of programming carried on the System; 15 (f) Billing and complaint procedures, including the address and telephone number of the cable office. Subscribers will be notified of any changes in rates, programming services or channel positions as soon as practicable through announcements on the System and in writing. Licensee must notify Subscribers and the City a minimum of thirty (30) calendar days in advance of such changes if the changes are within the control of Licensee. In addition, Licensee must notify Subscribers thirty (30) calendar days in advance of any significant changes and any other information required by the preceding paragraph (ii) Billing: a) Bills will be clear, concise and understandable. Bills will be fully itemized, with itemizations including, but not limited to, basic service, premium service, and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. b) In case of a billing dispute, Licensee will respond to a written complaint from a Subscriber within thirty (30) calendar days from receipt of the complaint. c) Refund checks will be issued promptly, but no later than either: (i) the Subscriber's next billing cycle following resolution of the request or thirty (30) calendar days, whichever is earlier, or (ii) the return of the equipment supplied by Licensee if Cable Service is terminated. If for any reason any Subscriber terminates any monthly service prior to the end of a prepaid period, a prorated portion of any prepaid Subscriber service fee, using the number of days within the billing period as a basis, must be credited to the Subscriber's account by Licensee. 16 d) Credits for service will be issued no later than the Subscriber's next billing cycle following the determination that a credit is warranted. e) Residential billing statements must include the local address and local phone number of the local Licensee office.B. Maintenance and Complaints. 1. Repair Force. Licensee must maintain a sufficient repair force of technicians that must respond to Subscriber complaints, loss of service or requests for repair. 2. Resolution of Complaints. Licensee must use its best efforts to resolve complaints as soon as practicable after the date complaints are received. 3. Prorated Billing Credit for Service Interruption. Upon a Subscriber's notification to Licensee of a Service Interruption, that Subscriber's account must be credited a prorated share of the monthly charge for the service if the Subscriber is without service for any reason, except Subscriber-inflicted damages to Licensee's equipment, for a period exceeding twenty-four (24) hours. 4. Complaints Received by the City. All Subscribers and residents may direct complaints and inquiries regarding Licensee's service or performance to the City. The City will promptly submit those complaints and inquiries to Licensee on a form upon which both parties agree. 5. Relocation of the System. Licensee must, at its expense, protect, support, disconnect, relocate, or remove any of its property when required by the City Manager (or designee) by reason of traffic conditions, public safety or welfare; street vacation; freeway or street construction or repair, change or establishment of street grade; installation of sewers, drains, water pipes, power lines, signal lines, transportation facilities, tracks, or any other types of structure or improvements by public agencies. The City may disconnect, remove or relocate any of Licensee's facilities, which have not been disconnected, removed or relocated within a reasonable period of time after a request from the City and Licensee must reimburse the City for its actual costs in 17 disconnecting, removing, or relocating Licensee's facilities. Neither the City nor any agent, contractor or employee thereof shall be liable to Licensee, its customers or third parties for any damages caused them or the System due to any activities described in the preceding two sentences, except in the case of willful misconduct or gross negligence. The City shall use reasonable efforts to treat all occupants of public rights-of-way in a non-discriminatory manner with respect to activities and obligations described herein, taking into account its reasonable ability to act given the differing regulatory regimes for, laws applicable to and claimed rights of different providers. 6. Discontinuance, Abandonment, and Removal of the System. Upon the revocation; termination, or expiration of this License, by (a) mutual agreement of the City and Licensee, (b) Licensee's acquiescence or failure to challenge same, or (c) a final order of a court which Licensee either does not appeal or from which there is no further right of appeal, then the following must occur: Licensee shall immediately discontinue the provision of Cable Services and all rights of Licensee to use the Streets shall cease. Licensee, at the direction of the City, must remove its System, including all supporting structures, transmission and distribution portions of the System that is owned by Licensee, and other appurtenances, fixtures or property from the Streets, in, over, under, along, or through which they are installed within six (6) months of the revocation, termination, or expiration of this License except that (a) Licensee may abandon its facilities in place with the City's consent, and (b) Licensee must not remove underground facilities without the City's consent in advance, which shall not be unreasonably withheld or delayed. Prior to any removal, Licensee must notify the City and persons owning property abutting streets where removal will occur. Licensee must also restore all property it disturbs, public or private, to the condition in which the property existed prior to the installation, erection, removal, or construction of the System, including any improvements made to such property subsequent to the construction of its System. Restoration of streets and City property must be in accordance with the directions and specifications of the City, and all applicable laws, ordinances and regulations, at Licensee's sole expense. If such removal and restoration is not completed within six (6) months after the later of (i) revocation, termination, or expiration of the License and (ii) 18 the receipt of any necessary consents from the City or any other parties, all of Licensee's property remaining in the affected streets must, at the option of the City, be deemed abandoned and shall, at the option of the City, become its property or the City may obtain a court order compelling Licensee to remove same. In the event Licensee fails or refuses to remove its System or to satisfactorily restore all areas to the condition in which they existed prior to the original construction of the System, the City, at its option, may perform such work and if such work is performed within one (1) year of the revocation, termination or expiration of this License collect the costs thereof from Licensee. No letter of credit must be released (during this one year period) until the City has certified to Licensee in writing that the System has been dismantled, removed, and all other property restored, to the satisfaction of the City. C. Discrimination. Licensee agrees that it will not discriminate among Subscribers and the public with regard to rates and charges or the provision of any service based on considerations of race, color, creed, sex, marital or economic status, national origin, political party, mental or physical disability or neighborhood of residence; and must comply with all non-discrimination requirements of applicable federal, state and local laws. 5. RESIDENT, PROPERTY OWNER, OR TENANT REQUEST FOR ASSISTANCE PROCEDURE A. "Request for Assistance" means a written request for assistance delivered by the City via fax or e-mail to Licensee resulting from a concern received by the City from a resident, property owner, or — tenant related to the construction, installation, operation or maintenance of Licensee's System. B. Upon receipt of a Request for Assistance from the City, Licensee must take action as described below: 1. Licensee must make every reasonable attempt to contact the resident, property owner, or tenant cited in the Request for Assistance in an attempt to resolve the issue causing the resident, property owner, or tenant's concern, the same day it is received. In no case shall the attempt occur later than the next business day. 19 2. Licensee must respond to the City, via fax, or e-mail within two (2) business days indicating when and what action(s) Licensee took in response to the Request for Assistance. 3. Licensee must maintain an accurate and complete log of the information contained and resulting from each Request for Assistance: the identity of the resident, property owner, or tenant and his/her concern, street address and telephone number, and when and what action(s) Licensee took in response thereto. The City may examine the log upon request. 4. Licensee must provide, in writing, upon request of the City, a detailed description of actions taken in response to a Request for Assistance. 5. Licensee must provide each Subscriber annually with a written statement describing in full the process for submitting a service request or Subscriber complaint. 6. PUBLIC, EDUCATIONAL AND GOVERNMENTAL ("PEG") CHANNELS A. Required Access Channels. Within one hundred eighty (180) days after Licensee begins offering Cable Service in the City, Licensee will provide the City with up to two (2) public, educational, and governmental access channels ("PEG Channels") as determined in the City's sole discretion. The two PEG Channels shall be on the Basic Cable Service Tier of the System and two other channels of non-commercial government programming, at least one of which may be programmed by the federal government in the digital programming tier of the system, as provided for in A.R S. § 9- 506(D)(1). Channel 11 and 99 shall be reserved for this capacity with a logo approved by the City. All costs associated with the obligations in this Section to commence PEG signals at the point of origination back to the headend and transmitted to subscribers with the same quality, functionality and identification as other channels on the system, shall be borne by Licensee. Except as provided in this Section, Licensee shall have no responsibility for the management, operation or administration of PEG Channels and shall have no editorial control pursuant to A.R.S. § 9-506(D)(1). B. Quality and Subscription Fees. PEG Channels located on the Basic Cable Service Tier shall be grouped together and located on the System in reasonable proximity to other commercial video channels on the System. Licensee will deliver the PEG Channels to Subscribers at the same visual and audio quality, same functionality 20 and at the same bit rate as Licensee delivers the primary signal of local television network broadcast stations on its Cable System ("Network TV"), such that the PEG channels are indistinguishable from Network TV in video and audio quality and functionality. Should Licensee convert the Basic Cable Service Tier to digital format, Subscribers must be able to continue to receive PEG Channels free of charge except for the standard rate applicable for the Basic Cable Service Tier. PEG Channels must be receivable by Subscribers without special expense, other than the expense required to receive Basic Cable Service or digital service, as applicable. Licensee must maintain PEG channels consistent with FCC technical standards. If no FCC standards for PEG Channels exist, Licensee must maintain PEG channels using FCC technical standards for local over-the-air television channels The City recognizes that Licensee is unable to improve the technical quality of PEG Channels but Licensee must not degrade the technical quality once it is received by Licensee. Licensee agrees not to encrypt PEG channels any differently than other commercial channels available on the System unless the City and Licensee mutually agree in writing to a non-traditional format that is not similar to those of broadcast channels. C. High Definition Transition of PEG Programming. Upon 180 day advance written notice to Licensee the City shall have the right to require that Licensee carry one (1) of the PEG Channels in both SD and HD format consistent with the manner and tier placement in which Licensee delivers the primary signal of Network TV. City shall have the sole discretion to determine which of its PEG Channels migrate to HD without the addition of mandates or content restrictions. HD resolution will be the same resolution used in Licensee's HD tier, such that the PEG HD channels are indistinguishable from Network TV in video and audio quality and functionality. Licensee will continue to carry the City PEG channels in SD format in addition to HD format as long as there are SD channels in Licensee's basic channel lineup. D. Obligations of Licensee. Licensee must permit the City to operate a production studio (the "Studio") located in City Hall as identified as above in Section 3, subsection 16, at a site determined by the City Licensee, at its sole cost, will design build and maintain all PEG upstream feeds, connections and distribution facilities between its video channel aggregation point and the Studio in a manner so that no degradation in signal quality or content as originated by City shall occur. Licensee must furnish a new state-of-the-art digital fiber optic transmission system consisting of transmitters and receivers. Transmitters and receivers must be of the type 21 consistent and compatible with current industry standards for the application of continuous conversion of broadcast quality audio and video to date for transport over fiber optic cable. Licensee must interconnect at its sole cost the Studio to the headend or other main distribution point of the System for distribution of the programming of the PEG Channels with the above-mentioned fiber optic cable to a point designated by the City. At the request of the City, Licensee at Licensee's cost shall provide timely and reliable advice regarding acquisition, maintenance and use of any Studio and production equipment that may be obtained for that purpose by the City. 7. LICENSE FEE A. Payment to the City. 1. Use of Streets/Cost of Regulation. In consideration of the rights, powers and privileges, permission and authority granted by this Agreement, for use of the City's streets and other public rights-of-way, Licensee must pay to the City an amount equal to five percent (5%) of its Gross Revenues as defined in A.R.S. § 9-505 (6) as amended from time to time, received from the operation of the System in the City ("License Fee"). 2. Payment of Fee. Payment of the License Fee shall be in lieu of all occupational, encroachment permits, pole attachment or other license fees or charges imposed by the City, other than generally applicable business license fees and any fees or charges imposed by the City as a condition of issuing construction permits. 3. Revenue Not From Operation of Cable System. This Agreement does not excuse the payment of any occupational license fee, charge or tax relating to any business endeavor for which Licensee is not obligated to pay a Licensee fee, subject to applicable federal and state law. 4. Taxes of General Applicability. This Agreement does not prohibit the City from imposing on Licensee, as part of a group of businesses or activities, any tax, fee or assessment of general applicability that is not unduly discriminatory against operators of cable systems or their subscribers, subject to 47 U.S.C. § 542. 5. Quarterly Payments. License fee payments must be delivered to the City within forty-five (45) calendar days after the 22 expiration of each quarter year ending December 31, March 31, June 30, and September 30. Each payment must be accompanied by a detailed statement of Gross Revenues by category received for the quarter in connection with the operation of the System in the City, and a report showing the computation of the fees. Each such detailed statement shall be signed by an authorized corporate officer of Licensee attesting to the accuracy of the detailed statement. 6. Acceptance of Payment Not Accord or Release No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall acceptance of payment be construed as a release of any claim the City may have for further or additional sums payable under the provisions of this Agreement. All amounts paid by Licensee shall be subject to audit by the City, at the City's expense. 7. Late Payment. All amounts paid by Licensee shall be subject to audit by the City, at the City's expense. Any Access Support fees owing pursuant to this Agreement which remain unpaid more than thirty (30) calendar days after the dates specified herein shall be delinquent and shall thereafter accrue interest at the maximum allowable rate under state law. Interest shall begin to accrue immediately whether the City provides notice of nonpayment or not. 8. Early Termination of Agreement. In the event the Agreement is terminated for any reason before its normal termination date, the License fee shall be prorated to reflect the time elapsed since the last payment was made to the City. Licensee must pay to the City not later than thirty (30) calendar days following termination of the license the required percentage of Gross Revenues. B. Annual Financial Report. Licensee must deliver an annual report to the City Manager no later than ninety (90) calendar days after the close of Licensee's fiscal year which must include full audited financial statements for the previous year, including income statement, balance sheet, cash flow statement and appropriate explanatory footnotes, for Licensee or for its parent company "Parent company" means CenturyLink Inc., which owns one hundred percent (100%) of Licensee. Financial statements must be audited by an independent certified public accountant. If the parent company is a public company and the audited financial report of the parent company has not been published by the date 23 due under this Section, then the audited financial report shall be deemed submitted on time if delivered to City within thirty (30) calendar days after publication. C. Annual Local Operations Report. Licensee must deliver an annual local operations report to the City Manager no later than ninety (90) calendar days after the close of the Licensee's fiscal year which shall be deemed submitted on time if delivered to City within thirty (30) calendar days after publication of the corresponding audited report in Section 7(B) above. Said report shall be specific to the City and to Licensee's operation of its System in the City, separate and apart from any corporate annual report compiled and provided by Licensee or its parent company, shall be certified as being correct by an authorized corporate officer of the Licensee, and shall include at a minimum: 1. A statement of revenues for the previous calendar or fiscal year, including Total Gross Revenues. 2. A summary of the previous year's activities including, but not limited to: services begun and/or dropped, Subscribers gained and/or lost and year-end totals, service area at beginning and end of year (map and text), revenues collected, License Fees paid to the City, plant miles constructed, plant miles activated, changes in local management and staff, rate structure and changes during the year, new services offered, programming changes, changes in service policies and/or procedures, and System technical changes. 3. At the times and in the form prescribed, such additional reports with respect to Licensee's operation, affairs, transactions, or property as may be reasonably necessary and appropriate for the evaluation of Licensee's performance under the License. D. Audit. The City, either by itself or in combination with other municipalities served by Licensee, may arrange for and conduct audits of the necessary financial records of Licensee for the purpose of verifying License fees. Audits may be conducted by any person designated by the City. The City shall notify Licensee at least seven (7) calendar days prior to the date it will begin reviewing Licensee's records. All records reasonably necessary for such audit must be made available by Licensee at a location in the City limits. Any additional amount due the City must be paid within thirty (30) days of the City's submitting an invoice for such sum, and if such sum shall exceed three percent (3%) of the total 24 License Fee which the audit determines should have been paid for any calendar year, Licensee must pay the City's cost of auditing that calendar year as well. Notwithstanding the above, if Licensee or Licensee's auditor disagrees with the City's determination that the additional amount due exceeds three percent (3%), the City's auditor and Licensee's auditor shall choose a neutral auditor who shall make a determination, which is final and binding on both parties as to whether the three percent (3%) amount was exceeded. The cost of the neutral auditor shall be borne equally by the Parties. E. Access to Records. In addition to access to the records of Licensee for financial audits, Licensee must make available to the City, upon seven (7) calendar days written notice to Licensee, and the City shall have the right to inspect, such books, records, maps and other materials of Licensee that are necessary to verify compliance with the terms of this Agreement, at Licensee's closest office where such records are normally maintained, during normal business hours and on a non-disruptive basis. The records subject to inspection must include, but not necessarily be limited to, all public records required to be kept by Licensee in a public file pursuant to the rules and regulations of the FCC. The location of the records to be inspected shall be no farther than 50 air miles from City Hall in Apache Junction, Arizona. 8. RATE REGULATION A. All Rights Reserved. The City reserves all of its rights to regulate the Licensee's rates to the maximum extent permitted by law. 9. INDEMNIFICATION, LIABILITY INSURANCE, AND BONDS AND LETTERS OF CREDIT A. Disclaimer of Liability. The City shall not at any time be required to pay from its own funds for injury or damage occurring to any person or property from any cause whatsoever arising out of Licensee's construction, reconstruction, maintenance, repair, use, operation, condition or dismantling of the System or Licensee's provision of Cable Services. B. Indemnification. To the fullest extent permitted by law, Licensee must, at its sole cost and expense, indemnify, defend and hold harmless the City and all associated, affiliated, allied and subsidiary entities of the City, now existing or hereinafter created, and it's Mayor and City Council, officers, appointees, boards, commissions, 25 employees, agents, attorneys, contractors, and volunteers (hereinafter referred to as "Indemnitees") from and against: 1 Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of: any act or omission of Licensee, its personnel, employees, agents, contractors or subcontractors, resulting in economic harm, personal injury; bodily injury, sickness, disease or death to any person or damage to, loss of or destruction of tangible or intangible property, libel, slander, invasion of privacy and unauthorized use of any trademark, trade name, copyright, patent, service mark or any other right of any person, firm or corporation; and any challenge to this agreement based on unequal competition which may arise out of or be in any way connected with Licensee's construction, reconstruction, installation, operation, maintenance or condition of the System and any other facilities authorized by or permitted due to the issuance of this License, including those arising from any matter contained in or resulting from the transmission of programming over the System, but excluding any programming provided by Indemnitees which is transmitted over the System; the provision of Cable Services or other services authorized by or permitted due to the issuance of this Agreement; the release of Hazardous Substances, or; the failure to comply with any Federal, state or local statute, ordinance or regulation. 2 Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and other consultants), which are imposed upon, incurred by or asserted against the Indemnitees by reason of any claim or lien arising out of work, labor, materials or supplies provided or supplied to Licensee, its contractors or subcontractors, for the installation, construction, reconstruction, operation or maintenance of the System and any other facilities authorized by or permitted due to the issuance of this License or the provision of Cable Services or other services authorized by or permitted due to the issuance of this Agreement. 26 3. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of any financing or securities offering by Licensee or its Affiliates for violations of the common law or any laws, statutes, or regulations of the State of Arizona or the United States, including those of the Federal Securities and Exchange Commission, whether by Licensee or otherwise. 4. Licensee's obligation to indemnify Indemnitees under this License must extend to claims, losses, and other matters covered in this Agreement that are caused or contributed to by the negligence of one or more Indemnitees. However, in such case, the obligation to indemnify shall be reduced in proportion to the negligence of the lndemnitees. C. Assumption of Risk. Licensee undertakes and assumes for its officers, agents, contractors and subcontractors and employees (collectively "Licensee" for the purpose of this Section), all risk of dangerous conditions, if any, on or about any City-owned or controlled property or public rights-of-way, and Licensee hereby agrees to indemnify and hold harmless the Indemnitees against and from any claim asserted or liability imposed upon the Indemnitees for personal injury or property damage to any person, other than from lndemnitees' gross negligence, arising out of Licensee's installation, operation, maintenance or condition of the System or other facilities or Licensee's failure to comply with any Federal, state or local statute, ordinance, or regulation. D. Defense of Indemnitees. In the event any action or proceeding shall be brought against the Indemnitees by reason of any matter for which the Indemnitees are indemnified hereunder, Licensee shall, upon notice from any of the Indemnitees, at Licensee's sole cost and expense, resist and defend the same with legal counsel selected by Licensee and consented to by the City, such consent not to be unreasonably withheld; provided, however, that Licensee shall not admit liability in any such matter on behalf of the Indemnitees without their written consent and provided further that Indemnitees shall not admit liability for, nor enter into any compromise or settlement of, any claim for which they are indemnified hereunder, without the prior written consent of Licensee. 27 E. Notice, Cooperation and Expenses. The Indemnitees shall give Licensee prompt notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section. Nothing herein shall be deemed to prevent the Indemnitees at their own expense from cooperating with Licensee and participating in the defense of any litigation by their own counsel. F. Insurance. During the Term of the License and any extensions thereto, Licensee must maintain, or cause to be maintained, in full force and effect and at its sole cost and expense, the following types and limits of insurance: 1. Worker's compensation insurance meeting Arizona statutory requirements and employer's liability insurance with minimum limits of Two Million Dollars ($2,000,000) for each accident. 2. Comprehensive commercial general liability insurance with minimum limits of Ten Million Dollars ($10,000,000) or less as may be determined in the sole discretion of the City as the combined single limit for each occurrence of bodily injury, personal injury and property damage. The policy shall include coverage for: products and completed operations liability; independent contractor's liability; and coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as explosion, collapse and underground ("XCU") coverage. 3. Broadcaster's liability coverage for loss or damage arising out of publications or utterances in the course of or related to advertising, broadcasting, telecasting or other communication activities conducted by or on behalf of Licensee with minimum limits of Ten Million Dollars ($10,000,000) or less as may be determined in the sole discretion of the City as the combined single limit for each occurrence. 4 Automobile liability insurance covering all owned, hired, and non-owned vehicles in use by Licensee, its employees and agents, with personal protection insurance and property protection insurance to comply with the provisions of the Arizona No-Fault Insurance Law, with minimum limits of Two Million Dollars ($2,000,000) as the combined single limit for each occurrence for bodily injury and property damage 28 5. The policies required by this Agreement shall contain a waiver of transfer rights of recovery (subrogation) against City, its Mayor and City Council, agents, appointees, representatives, directors, officials, officers, employees, and volunteers for any claims arising out of the work of any of Licensee's contractors or subcontractors. 6 All insurance policies other than those for worker's _. compensation and pollution legal liability insurance shall be written on an occurrence and not on claims made basis. 7. The coverage amounts set forth above may be met by a combination of underlying primary and umbrella policies so long as in combination the limits equal or exceed those stated. 8. All policies of insurance shall contain a waiver of subrogation clause consistent, however, with Section 9(B)(3) above 9. All insurance policies shall be written with a zero dollar deductible (no deductible). 10. As between the City and/or Additional Insureds on the one hand, and Licensee on the other hand, if more than one policy of insurance does or may apply to a given claim or matter, then the policy maintained by Licensee pursuant to this License shall be deemed the primary policy, and that policy shall contain a provision that states that it is the primary policy as opposed to any other policy of insurance that may apply to the City and/or Additional Insureds on any given claim or matter. The term "policy of insurance" as applied to the City/Additional Insureds shall include any self-insurance program, self-insured retention or deductible or risk pooling program, or an indemnification, defense or other similar program purchased or maintained by the City/Additional Insureds. 11. All coverages specified in this Section F shall automatically increase by ten percent (10%) on every fifth (5th) anniversary date of this Agreement. G. Performance Bond. Licensee agrees to the construction requirements set forth in this Agreement, and shall comply with Chapter 14 of the A.J.C.C. regarding insurance, bonds, and letters of credit by obtaining a corporate performance bond and an irrevocable letter of credit solely for the purpose of guaranteeing 29 the construction of the System and safeguarding the private property during construction. Licensee shall maintain a performance bond in the amount of One Hundred Thousand Dollars ($100,000), and an irrevocable letter of credit in the amount of Twenty Five Thousand Dollars ($25,000), both being provided to the City Attorney within thirty (30) calendar days after execution of this Agreement and prior to any construction work in the public rights- _ of-way. Where any portion of any required bond is drawn down by the City, Licensee shall immediately cause the full amount of the drawn down bond to be reinstated to the stated amount herein. 10. LIQUIDATED DAMAGES A. Licensee understands and agrees that failure to comply with any time and performance requirements in this License or Chapter 14 of the A J C.C., will result in damage to the City, and that it is and will be impracticable to determine the actual amount of such damage in the event of delay or nonperformance; therefore, the Parties hereby agree to the liquidated damages specified in Chapter 14 of the A.J.C.C., incorporated by reference herein B. Prior to assessing any of the liquidated damages set forth in this License and Chapter 14 of the A.J.C.0 , the City Manager shall give licensee seven days written notice of its intention to assess damages If the City Manager concludes that Licensee is in fact liable for liquidated damages pursuant to this Section 10, the City Manager shall issue to Licensee by certified mail a Notice of Intention to Assess Liquidated Damages. The Notice shall set forth the nature of the violation and the amount of the proposed assessment. Licensee must, within thirty (30) calendar days of receipt of such notice 1 Respond to the City in writing, contesting the City's assertion of violation and providing such information or documentation as may be necessary to support Licensees position; or 2. Cure any such violation (and provide written evidence of the same), or, in the event that, by the nature of the violation, such violation cannot be cured within such thirty (30) calendar day period, take reasonable steps to cure said violation and diligently continue such efforts until said violation is cured. Licensee shall report to the City, in writing, at 30-day intervals as to Licensee's efforts, indicating the steps taken by Licensee to cure said violation and reporting Licensee's progress until such violation is cured. 30 C. In the event that Licensee contests the City's assertion of violation or fails to respond to the City's notice of intent to assess liquidated damages, within fourteen (14) calendar days the City shall schedule and then conduct a hearing in accordance with the procedures set forth in Article 14 of the A.J.C.C. At the public hearing the City may affirm or deny the violation in whole or in part. To the extent the City affirms the violation, it may fashion and enforce any appropriate remedy therefore including up to revocation of this Agreement. The City's decision shall be reduced to writing and delivered to Licensee. If the appropriate remedy is revocation of this Agreement, then such revocation shall not take effect until at least thirty (30) calendar days following delivery of the City's written decision to Licensee. 11. TRANSFERS AND ASSIGNMENTS A. Transfer of License. This License shall not be sold, assigned, or transferred, either in whole or in part, or leased, sublet (except as provided in 11(H) below), nor shall title thereto, either legal or equitable or any right, interest or property therein, pass to or vest in any person, without the prior written consent of the City, which consent shall not be unreasonably withheld. The sale or transfer of the License to an Affiliate of Licensee in all cases requires at least sixty (60) calendar days prior written notice to City, but does not require prior approval of the City as long as: (i) the sale or transfer of the existing or newly created equity interest in the Licensee does not result, directly or indirectly, in a transfer of Control of the Licensee; and (ii) the transferee already holds an ownership interest in the Licensee of twenty-five percent (25%) or more. Such consent shall not be required for a transfer in trust, mortgage, or other hypothecation in whole or in part to secure an indebtedness. The proposed assignee must show the transfer will not cause any increased risks of nonperformance of the License or any loss to the City of it's bargained for consideration in this License. The assignee's showings must at a minimum detail facts sufficient to show the assignee's technical ability, financial capability, legal qualifications, and general character qualifications and such other qualifications as reasonably determined by the City and the assignee must agree to comply with all provisions of this Agreement. B. Transfer of Control. No change, transfer, or acquisition of control of Licensee shall occur without the prior written consent of the City, which consent shall not be unreasonably withheld. Any sale or transfer of stock in Grantee so as to create a new controlling interest in the System shall be subject to the requirements of this 31 Section 11. The term "controlling interest" as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. C Notification: Licensee shall notify the City in writing no less than sixty (60) calendar days in advance of any actual or proposed change in, or transfer to, or acquisition by any other party, of control of Licensee. The sale or transfer of this License to an Affiliate of Licensee does not require prior approval of the City as long as: (i) the sale or transfer of the existing or newly created equity interest in the Licensee does not result, directly or indirectly, in a transfer of control of the Licensee; and (ii) the transferee already holds an ownership interest in the Licensee of twenty-five percent (25%) or more. D. Rebuttable Presumption: A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person, or group of persons (other than an Affiliate of Licensee), of more than twenty-five percent (25%) of the voting interest of the Licensee or of the person exercising management authority over the Licensee. The burden is on the Licensee to rebut this presumption. E. Hearing: Except in the case of an assignment of this License to an affiliate of Licensee as described above, upon written notification by the Licensee to the City of a proposed assignment of this License, or transfer of control or ownership of the Licensee, the City Manager shall issue his or her written notice fixing and setting forth the day, hour, and place certain when and where any persons having any interest therein may appear and be heard for a hearing. The City Manager shall cause such notice to be published in a newspaper of general circulation within the City. The City Manager also shall cause a copy of such notice to be mailed to the Licensee at least ten (10) calendar days prior to the date specified for the hearing. At the time set for such hearing, or at any adjournment thereof, the City Manager shall proceed to hear the matter. Following the close of such hearing, the City Manager shall prepare and file with the City Council his or her report of the hearing, his or her findings, and an opinion containing his or her recommendations to the City Council and the reasons therefore. If after the expiration of ten (10) calendar days following receipt of the City Manager's report and opinion, the City Council shall find that the assignment of this License or transfer of control or ownership of Licensee will not be detrimental or injurious to the best interests and welfare of the subscribers and users, and of the City, then the City Council by resolution shall consent to the assignment of the License or transfer 32 of control or ownership of the Licensee. Such resolution shall there upon become and shall be a part of this Agreement. F. Not a Waiver of Rights: The consent or approval of the City Council to any transfer of this License shall not constitute a waiver or release of the rights of the City in and to the public rights-of-way, and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of this Agreement. G. Payment of Fees: Notwithstanding any other requirement of this License, each applicant for a transfer or assignment must furnish with its request a nonrefundable filing fee in the amount established by the City Council, by cash, certified or cashier's check, wire transfer, or in any other manner acceptable to the City Manager made payable to the City. No proposal for a transfer or assignment of a License shall be considered without receipt of said fee. The fee will be used for the purpose of covering the City's cost in consideration of a transfer or assignment of this License. H. Signature Required: In no event shall a transfer of ownership be approved or effective without the successor-in-interest first becoming a signatory to this Agreement Grant, Rent or Lease of Systems: As long as a grant, rent, or lease does not amount to a transfer and is made in the ordinary course of business with prior notice to the City, Licensee in the normal course of providing Cable Services may grant, rent, or lease use of its System to other persons. Any such use shall be restricted to and consistent with such uses as the Licensee is authorized in this License or under other applicable law. Any such use shall be in compliance with applicable Federal and state law. Any such grants, �.. lease, or rent by the Licensee shall not, however, thereby relieve Licensee of any requirement or obligation under this License as to its use of the Streets, and any such grant, rent, or lease shall require that such other person comply with the appropriate provisions of the City Code, and the License as such use warrants. The grant, lease, or rent shall expressly provide for the authority of the City under applicable law to regulate the use provided by the grant, lease, or rent (including but not limited to the authority to protect the public welfare, safety, and health) and to enforce compliance with any applicable standards established by the City Code or this License. J. Void Ab Indio. Any attempted transfer or assignment action by Licensee that does not in all ways comply with this Section 11 shall be void ab initio. 33 K. Novation Prohibited: Except as provided in this Section 11, no other substitution of Licensee creating a novation shall occur without the prior written consent of the City which may be withheld at the sole discretion of the City. 12. MISCELLANEOUS PROVISIONS A. Time of the Essence. Whenever this Agreement sets forth any time for any action to be performed by, or on behalf of, Licensee, that time shall be deemed of the essence. B. Subsequent Action by State or Federal Bodies. 1. Complete Agreement. It is the intent of the City and Licensee that the terms, conditions and obligations set forth in this Agreement govern their relationship for the full term of the Agreement. With the exception of Sections 3(A)(9), 4(A)(1) and 5(E), in the event that any court, agency, commission, or other authority of competent jurisdiction declares this Agreement invalid, in whole or in part, or requires Licensee either to: (a) perform any act which is inconsistent with any provision of this Agreement, or (b) cease performing any act required by any provision of this Agreement, then Licensee shall not be required to comply with any term declared invalid and shall comply with any requirements of the court. 2. Clarification of Law. Unless otherwise set forth in this Agreement, either Party may seek a ruling about the applicability to the terms of this Agreement of any court _ determination, federal or state law or regulation rendered, issued, approved, adopted or enacted after the execution of this Agreement. C. Non-enforcement by the City. Licensee shall not be relieved of its obligation to comply with any of the provisions of this Agreement by reason of any failure of the City to enforce prompt compliance. D. Delays and Failures Beyond Control of Licensee or the City. Neither City nor Licensee, as the case may be, shall be considered not to have performed its obligations under this Agreement in the event of enforced delay (an "Enforced Delay") due to causes beyond its control and without its fault or negligence or failure to comply with all applicable laws, including, but not restricted to, acts of God, fires, floods, epidemics, pandemics, quarantine, restrictions, embargoes, labor disputes, and unusually severe weather. 34 E Conflicts of Interest. The provisions of A.R.S. § 38-511 relating to cancellation of contracts due to conflicts of interest shall apply to this Agreement. F. Severability. The City and Licensee each believe that the execution, delivery and performance of this Agreement are in compliance with all applicable laws. However, with the exception of Sections 3(A)(9), 4(A)(1) and 5(E), in the unlikely event that any provision of this Agreement is declared void or unenforceable (or is construed as requiring the City to do any act in violation of any applicable laws, including any constitutional provision, law, regulation, or City Code), such provision shall be deemed severed from this Agreement and this Agreement shall otherwise remain in full force and effect, provided that this Agreement shall retroactively be deemed reformed to the extent reasonably possible in such a manner so that the reformed agreement (and any related agreements effective as of the same date) provide essentially the same rights and benefits (economic and otherwise) to the Parties as if such severance and reformation were not required. Unless prohibited by applicable laws, the Parties further shall perform all acts and execute, acknowledge and/or deliver all amendments, instruments and consents necessary to accomplish and to give effect to the purposes of this Agreement, as reformed G. Written Notice. All notices, reports or demands required to be given in writing under this Agreement shall be deemed to be given when delivered personally to Licensee or to the City or when three (3) business days have elapsed after it is deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to which notice is being given. The addresses may be changed by either party upon notice to the other party given as provided in this Section. At the time of this continuation of this Agreement by the City Council, the addresses of the parties are as follows: City of Apache Junction: City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ 85119 Attention: City Manager 35 With a non-binding courtesy copy to: City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ 85119 Attention: City Attorney Licensee: Qwest Broadband Services, Inc. d/b/a CenturyLink 1801 California St., 10th Fl. Denver, CO 80202 Attn. Public Policy With a non-binding courtesy copy to: CenturyLink 20 E. Thomas St. Phoenix, AZ 85012 Attention: Public Policy No notices, reports or demands to the City shall be deemed delivered unless a true and complete copy of each such notice, report or demand is simultaneously delivered to the following, which is only an administrative notice, and does not by itself constitute written notice. City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ 85119 Attn: City Attorney Licensee and City may from time-to-time substitute new service addresses and served parties by giving the other no less than thirty (30) days written notice to the other. H. Titles. Titles to sections and subsections of this Agreement are provided for ease of locating information within the Agreement. A title shall not be deemed to change or alter the meaning of any section or subsection. The language of each section and subsection shall control its interpretation. Modification. Except as otherwise provided in this Agreement, or by applicable law, no provision of this Agreement shall be amended or otherwise modified (by passage of a subsequent ordinance or code 36 or otherwise), in whole or in part, except by an instrument in writing duly executed by the City and Licensee. J. Governing Law, Venue and Attorney Fees. The terms and conditions of this Agreement shall be governed by and interpreted in accordance with the laws of the State of Arizona. Any action at law or in equity brought by either Party for the purpose of enforcing a right or rights provided for in this Agreement, shall be tried only in a state court of competent jurisdiction in Pinal County, State of Arizona. The Parties hereby unconditionally waive all provisions of law providing for a change of venue in such proceeding to any other county or for removal to federal court. In the event either Party shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition in this Agreement, it is mutually agreed that the prevailing party in such final and non-appealable action to the percentage it prevails may recover its costs including: all litigation and appeal expenses, collection expenses, reasonable attorneys' fees, necessary witness fees and court costs to be determined by the court in such action only as may be awarded by the Court. For purposes of this provision, reasonable attorney fees must be calculated as the average of all independent legal counsel practicing in the City of Apache Junction, Arizona. K. No Third Party Beneficiaries. By entering into this Agreement, the Parties expressly do not intend to create any obligations or liabilities, or promise any performance to, any third party, nor have the Parties created for any third party any right to enforce the terms of this Agreement. L Relationship between the Parties Nothing contained in this Agreement shall be construed as creating an association, trust, partnership, joint venture, or agency relationship of any kind between the Parties. Each Party shall be individually liable for its own duties, obligations and liabilities under this Agreement. M. Mutual Representations and Warranties of Authority. The Parties each represent and warrant that they have full authority to enter into and to perform under this Agreement, and that no further approvals, licenses or actions by a governmental agency are required by either Party to execute and enter into this Agreement. N. Conflict Between Ordinance and Agreement. In the event of any conflict between the terms and conditions of this Agreement and the provisions of the Ordinance, the provisions of this Agreement shall control. Licensee expressly acknowledges and agrees that 37 the City hereby retains all of its police powers and the City may unilaterally amend the Ordinance in the exercise of its police powers and Licensee shall comply with said Ordinance as may be amended. By executing this Agreement both the City and Licensee acknowledge and agree that neither is aware of any conflicts between this Agreement and the Ordinance. O. Business License and Privilege License Tax Applicability. Licensee represents and warrants that any license necessary to perform the work under this Agreement is current and valid. Licensee understands that the activity described herein constitutes "doing business in the City of Apache Junction" and Licensee agrees to obtain a business license pursuant to Article 8 of the Apache Junction City Code and a privilege license to the extent the Apache Junction City Tax Code is applicable and keep such licenses current during the term of this Agreement. Any activity by subcontractors within the corporate City limits, will invoke the same business and tax regulations on any subcontractors, and Licensee ensures its subcontractors will obtain any required licenses. All contractors and subcontractors shall also provide proof of insurance for all right-of-way work as dictated by the Public Works Department Director. JOHN S. INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: RICHARD J. STERN City Attorney 38 WRITTEN ACCEPTANCE OF LICENSE AGREEMENT Accepted and approved without changes or modifications. Qwest Broadband Services, Inc. d/b/a CenturyLink, Inc. By: Title: Date. APPROVED AS TO FORM: Counsel for CenturyLink, Inc. STATE OF ARIZONA ) ) ss. COUNTY OF The foregoing was acknowledged before me this day of , 20 , by John S. Insalaco, as Mayor of the City of Apache Junction, Arizona, an Arizona municipal corporation. Notary Public My Commission Expires. STATE OF ) ) ss. County of ) The foregoing was acknowledged before me this day of 20 , by as of Qwest Broadband Services, Inc. d/b/a CenturyLink, Inc. a Delaware corporation. Notary Public My Commission Expires. 39 w+ 4,11t CenturyLink- December 10,2014 Kathy Connelly City Clerk City of Apache Junction 300 E. Superstition Blvd. Apache Junction,AZ 85119 Dear Kathy, Accept this letter as CenturyLink's formal application to offer cable television services to residents in Apache Junction. Enclosed pleased fined our$2,500 application fee that is required by the City of Apache Junction to complete this process. As we discussed, it is CenturyLink's desire to negotiate this license agreement pursuant to the Federal Communications Commission informal process. We believe it is in the best interest of both parties to follow the informal route in order to provide the residents of Apache Junction with the best agreement possible. We look forward to the continued license discussions and ultimately to providing a competitive video offering to the residents of Apache Junction. Sin - y Liln1(144/1414 2 t E. Thomas Phoenix,AZ 85012 Cerrtu Link C TURYTBL, INC. Check Number SIP ry ATTN: Controller's Group 0007062920 P.O. BOX 4065 JPMORGAN CHASE BANK MONROE, LA 71211 DALLAS 89-ee;111i 1-877-386-7151 Void after 90 days 12/12/2014 *** TWO THOUSAND FIVE HUNDRED USD*** USD *********2,500 00* Pay to the order of CITY OF APACHE JUNCTION TAX & LICENSING DIVISION 300 E SUPERSTITION BLVD APACHE JUNCTION AZ 85119 Protected by posrtrve pay /` 0000 ?06 29 20" 41113008804 100 58000 798 7Ii• VOTE ROLL CALL Ii ;- v NOTES: r� t\TA\ ITEM# \\ 4) MEETI G O V- - MOTION BY: SECONDED BY (` 7 NO ABSTAINED ypINI WALDRON VICE C LR Q' BARKER Ni rrERDY / WILSON V RIZZI V AEVANS 7 C I ALACO UNANIMO S IN FAVOR OPPOSED ABSTAINED TOTAL ITEM NO. 11 I MOVE THAT THE CENTURYLINK APPLICATION SUBMITTAL BE ACCEPTED. `"'- ? City of Apache Junction, Arizona 300E Superstition . ; Boulevard .— �`, Apache Junction,AZ 85119 fP1 W o Agenda Item Cover Sheet r Agenda Item No 12 "r/} ' File ID 14-655 Sponsor. Larry Kirch Agenda Date: 1/20/2015 Index. In Control.City Council Meeting Presentation and discussion on city building code and related city code updates Staff will discuss updating the city's building codes to the 2015 edition of the International Code Council Series of Codes The city's current code is based on the 2006 edition Attachments. City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 Acacne unction 4 *7.1 City Council January 20, 2015 Work Session Updating the City ' s 2006 International Building Codes to the 2015 Editions City of Apache Junction Development Services Department " -'- . r Z • R1ZMAP' Presentation Overview p• Rationale For Code Updates Code Update Process Rationale for Periodic Updates ► Building and Code experts review and modernize codes every three years based on input from practitioners (Fire Marshals, Building Code Officials, Architects, ppis„, Engineers) 41- w ,r , ►r; Codes create minimum standards for Public Health, Safety and Welfare of the tl Arr Built Environment ► Safety codes, NOT aesthetic codes What We Propose to Adopt/ Re-adopt ....................... Components of the International Code Council Series including: ► International Building Code ► International Residential Code ► International Fire Code ► International Fuel And Gas Code ► International Mechanical Code ► International Property Maintenance Code (Housing And Dangerous Building Codes) ► International Energy Conservation Code What We Propose to Adopt/Re-adopt _..........::..................... Other Codes to adopt as part of the process ► Arizonans With Disabilities Act ► Mobile/Manufactured Home Standards ► National Electrical Code, 2014 1 Code Update Process ........................ ► Review the major changes between 2006 & 2015 that have development implications to city/developers ► City has, in the past, adopted 99% of the ICC Codes as written (Architects , Engineers, Contra ctors and Developers appreciate consistency between jurisdictions) ► Provide updates at future council work sessions s 1 ► Code adoption by ordinance (Chapter 7 Municipal Code) ► Fee adoption by ordinance (Chapter 4 Municipal Code) ► Update/streamline/clarify some permit fees (as appropriate) ► Use of neighboring communities (Mesa, Queen Creek, Gilbert, Pinal County) lusuousano ITEM NO. 12 DISCUSSION ITEM ONLY-NO ACTION AT THIS TIME 0,44 City of Apache Junction, Arizona 300E Superstition -j Agenda Item Cover Sheet Apache Junction,AZ 85119 � ►1zj l•/d Agenda Item No.13. File ID: 14-650 Sponsor. John Insalaco, Robin Barker, Gail Evans, Christa R Agenda Date. 1/20/2015 Index. City Internal Issue In Control. City Council Meeting Direction to staff on recruitment for city manager position In conjunction with City Manager George Hoffman's plans to retire in 2015, the mayor and council wish to proceed with a recruitment process to fill the position Attachments City of Apache Junction,Arizona Page 1 Printed on 1/12/2015 VOTE ROLL CALL ‘\ NOTES Nk4 \ ' 0\'\\ )1/4) i ,91) ' ITEM # MEETING OF MOTION BY: SECONDED BY ,,„t YES NO ABSTAINED VI E BARKER ERDY I itt EVANS /ALDRON / F�' ILSON 7 -, RIZ I V i CHAIRPE NSALACO UNANIMO S IN FAVOR OPPOSED ABSTAINED TOTAL AIM Nk. Ain bk • ITEM NO. 13 I MOVE THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING RECRUITMENT FOR CITY MANAGER POSITION. THAT STAFF BEGIN A TWO (2) WEEK INTERNAL RECRUITMENT WITH AN OPENING DATE OF JANUARY 29, 2015. A ROLL CALL VOTE NOTES: i6) T\0- ITEM# \\/\ MEETIN o F MOTION BY: SECONDED BY YE$ NO ABSTAINED COUNCILMEMBER EVANS I VICE MAYOR BARKER J COUNCILMEMBER RIZZI COUNCILMEMBER WALDRON COUNCILMEMBER SERDY J COUNCILMEMBER WILSON MAYOR INSALACO UNANIM?US IN FAVOR OPPOSED ABSTAINED TOTAL ITEM NOS. 14-15 I MOVE THAT AN EXECUTIVE SESSION AT 5.45 P.M., AND A WORK SESSION AT 7:00 P.M., BE HELD ON MONDAY, FEBRUARY 2, 2015, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY; AND THAT AN EXECUTIVE SESSION AT 5:45 P.M. BE HELD ON TUESDAY, FEBRUARY 3, 2015, IN THE CITY COUNCIL CONFERENCE ROOM. ADJOURNMENT: I MOVE THAT THE MEETING BE ADJOURNED AT P M ROLL CALL ws �) 'Noy REG.\ 9 i / SPEC: CITY COUNCIL: P / A P / A P / A MAYOR INSALACO VICE MAYOR BARKER COUNCILMEMBER EVANS 1/ COUNCILMEMBER RIZZI V COUNCILMEMBER SERDY • COUNCILMEMBER WALDRON i/ COUNCILMEMBER WILSON V TOTAL CITY STAFF IIH City Manager George Hoffman Assistant City Manager Bryant Powell "ff/` City Clerk Kathleen Connelly ✓ City Attorney Joel Stern V Public Safety Director Tom Kelly Public Works Director Giao Pham Parks & Recreation Director Jeff Bell Library Director Spencer Paden Finance Director Donna Meinerts City Engineer Emile Schmid Development Svcs Director Larry Kirch Human Resources Director Liz Riley Assistant to the City Manager r Matt Busby OTHERS jrz-64. Date: CITY OF APACHE JUNCTION Please select an option: REQUEST TO SPEAK FORM Item No. OR Call to The Public (One Form Per Item) Please fill out completely and return to the City Clerk prior to the conclusion of the City Manager's Report portion of the agenda. Do you wish to speak before Council on this item? Yes© Noo Only If Necessary a ❑ I am in favor of the proposed Item. ❑ I am opposed to the proposed Item. Name (Priflt) n CC i smo n Q3' eSQ S.,X3 Address City Zip Code C3)ar pl0010 e v,a( 1 . Gorn Telephone Email address This information will be used by staff for follow-up, if necessary. Speakers shall make comments directly to the Mayor and City Council when called up to speak at the podium. Note: Call to the Public comments have a three minute limit and Public Hearing comments have a five minute limit. Consent for Minor to be Audio and/or Video Recorded: I, , as the parent/guardian of (minor(s)), a minor(s), agree to allow said minor(s) to appear and/or participate in the City of Apache Junction City Council Meeting I further understand that this activity may be audio and/or video recorded and I hereby consent to the minor being audio and/or video recorded during his/her participation with the likelihood that their image will appear on cable TV and the Internet video stream showing their participation. Signature of Parent/Guardian Date 02/23/12 Date: /—.,//)1J CITY OF APACHE JUNCTION Please select an option: REQUEST TO SPEAK FORM Item No. OR Call to The Public (One Form Per Item) Please fill out completely and return to the City Clerk prior to the conclusion of the City Manager's Report portion of the agenda. Do you wish to speak before Council on this item? Yes❑ No❑ Only If Necessary ❑ o I am in„favor of the proposed Item. ❑ I am opposed to the proposed Item. A/6- 55-eV Name (Print) /�} /5// CrA C? /l( l ddress City Zip Code elephone Email addre s This information will be used by staff for follow-up, if necessary. Speakers shall make comments directly to the Mayor and City Council when called up to speak at the podium. Note: Call to the Public comments have a three minute limit and Public Hearing comments have a five minute limit. Consent for Minor to be Audio and/or Video Recorded: I, , as the parent/guardian of (minor(s)), a minor(s), agree to allow said minor(s) to appear and/or participate in the City of Apache Junction City Council Meeting. I further understand that this activity may be audio and/or video recorded and I hereby consent to the minor being audio and/or video recorded during his/her participation with the likelihood that their image will appear on cable TV and the Internet video stream showing their participation Signature of Parent/Guardian Date 02/23/12